Abstract
Abstract
This paper analyzes the functional relationship between Honesty and the Hidden Economy.By using Granger test of causality we find that the relationship between Honesty and the Hidden Economy , is reciprocal. And by using the nonlinear multiple regression we find that the Hidden Economy increases Honesty, we also find that the Honesty increases Hidden Economy, in a sample of 132 countries for the period 2005-2007.
Keywords
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