The Dynamics Shaping Underground Economic Behaviour

Funding: 2005: $55,892
2006: $58,000

Project Member(s): Bajada, C.

Funding or Partner Organisation: Australian Research Council (ARC Discovery Projects)

Start year: 2005

Summary: When a person fails to declare cash earnings that person is said to be participating in the underground economy. This project will provide the first known international comparison of the dynamics shaping illicit economic behaviour. The purpose of this project is to understand how changes in taxes and economic growth affect underground economy participation. This is crucial in the development of well-timed and constructive tax compliance initiatives. The results will have an important bearing on tax policy and tax audit programs, particularly in Australia, where the underground economy has become a topical issue.

Keywords: Underground Economy, Tax Evasion, Tax Mix, Business Cycles, Black Market, Taxpayer Behaviour,

FOR Codes: Macroeconomics (incl. Monetary and Fiscal Theory), Applied Economics not elsewhere classified, Taxation, Macroeconomic issues not elsewhere classified, Applied economics not elsewhere classified

Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.