NON-OBSERVED ECONOMY AND PUBLIC GOVERNANCE IN EU COUNTRIES

The authors propose a new modeling frame which allows to analyze different aspects of government interventions in terms of their impact on the Shadow Economy (SE) in EU countries, using an approach based on the Structural Equation Model (SEM) Partial Least Squares (PLS) Path Modeling (PM). In addition, policy implications are observed referring to tax evasion on which growing empirical literature insisted in recent years. In this way, such kinds of models may become more relevant for analyzing SE dynamics in economics as well as for some policy implications