[揽瓜阁精读] 205.“grey area” in economic

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205 ”grey area” in economic
P1:  participate informal/grey economy: fail to pay tax or comply（遵守） with regulations. Informal or underground or parallel economy is often mean broader including illegal acts: prostitution and drug dealing
P2: often found at the margins of poor countries? Misleading, exists in rich and poor places a like. Recent research: GE is growing and may hinder economic growth in developing countries.
P3: by its very nature（就本质而言）, size of informal economy in any country is hard to observe. FS ways to estimate: 1.ask or look.但是不行 2. indirect detective work is better. If cash& e use is growing faster than measured economy, informal activity is rising.
P4: FS: in 2000, informal in developing countries was 41%of official GDP. Z, B,T &OECD
P5: why IE exists? Ads: no income taxes to pay
P6:bigger is the IE as a share of GDP(legal) : S, G, I&B. poor countries grey market growth owe lot to IMF austerity（财政紧缩）programmes, increasing taxes and thus encourage many entre to opt out（选择退出）
P6: if poorest win, who lose?
P7: A the entire economy. DF: GE=low productivity and limits to make new tech and business practices.
P8: e.g. Russia. Greater scale benefits productivity but are swamped（淹没，压倒）by higher tax rate.
P9: DF: good to formalize informal sector.
P10: Broadening the tax base, cutting rates and improving enforcement would help. DF: approaches in T&B, if tax rate remain high and the probability of detection low, GA will continue to have irresistible appeal.