Prosty teoretyczny model szarej gospodarki

The article presents a theoretical shadow economy model based on Cobb-Douglas production function with decreasing returns to scale. The whole economy is divided into formal and informal sector with each enterprise operating in only one of the sectors. The size of shadow economy is measured with ratios of informal to formal production, informal to formal employment and informal to formal capital. The influence of main parameters (the difference between wages in formal and informal sectors, corporate income tax rate, labour elasticity of output and capital elasticity of output) on shadow economy is then analysed.