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Explaining and Tackling the Shadow Economy in Estonia, Latvia and Lithuania: a Tax Morale Approach

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Baltic Journal of Economics

ISSN: 1406-099X (Print) 2334-4385 (Online) Journal homepage: http://www.tandfonline.com/loi/rbec20

Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach Colin C. Williams & Ioana A. Horodnic
To cite this article: Colin C. Williams & Ioana A. Horodnic (2015) Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: a tax morale approach, Baltic Journal of
Economics, 15:2, 81-98, DOI: 10.1080/1406099X.2015.1114714
To link to this article: http://dx.doi.org/10.1080/1406099X.2015.1114714

© 2015 The author(s). Published by
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Published online: 12 Nov 2015.

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Date: 20 April 2016, At: 09:43

Baltic Journal of Economics, 2015
Vol. 15, No. 2, 81–98, http://dx.doi.org/10.1080/1406099X.2015.1114714

Explaining and tackling the shadow economy in Estonia, Latvia and
Lithuania: a tax morale approach
Colin C. Williamsa* a and Ioana A. Horodnicb

Management School, University of Sheffield, Sheffield, UK; bFaculty of Economics and Business
Administration, Alexandru Ioan Cuza University of Iasi, Iași, Romania

Downloaded by [95.158.49.18] at 09:43 20 April 2016

(Received 26 November 2014; accepted 28 October 2015)

To explain the shadow economy in the Baltic states of Estonia, Lithuania and Latvia, this paper evaluates the relationship between the shadow economy and tax morale. Viewing tax morale as a measure of the symmetry between the codified laws and regulations of formal institutions
(state morality) and the unwritten socially shared rules of informal institutions (civic

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