P020. Comparing the level of Kaitz Index with the shadow economy

• In Event: Poster Session & Ice Cream Social

Abstract

The Kaitz index in economics is an indicator that can be used to measure the size of the shadow economy. Our preliminary research indicates that economic indicators such as GDP and economic inequality can have an impact on predicting the size of the shadow economy.
We propose various explanations for this phenomenon. Firstly, we find that tax crime is more common in poorer countries. As the economies of countries develop and they become more wealthy, forms of crime tend to change. Petty crime still exists, but financial crime becomes more prominent in the case of Lithuania. We are testing this model with Southern European countries presently.

Author

• Vincentas Giedraitis, Vilnius University