Fuzzy Model of Estimating the Specific Weight of Shadow Economy Being a Manifestation of Economic Crime on the Basis of the Utility Function

Social security fraud, economic crime, prostitution, money laundering, smuggling, and other illegal actions have one thing in common—they are all considered to be “shadow economy” activities. Such activities are increasing and require immediate attention from social and economic policy-makers and law-regulating authorities. Fredrich Schneider and Dominik H. Enste have made a commendable effort to highlight the causes, effects, and size of the underground economy in their new book.

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Criminological characteristics of the manifestations of the shadow economy

Naukovyy Visnyk Dnipropetrovs kogo Derzhavnogo Universytety Vnutrishnikh Sprav ◽

10.31733/2078-3566-2020-3-232-239 ◽

2020 ◽

Vol 3 (3) ◽

pp. 232-239

Author(s):

Nadiya Fisunenko ◽

Pavlo Tkachenko ◽

Albina Kuzmenko

Keyword(s):

Tax Evasion ◽

Shadow Economy ◽

Economic Crime ◽

Criminological Theory ◽

Professional Activity ◽

Economic Interests ◽

Standards Of Living ◽

Country Analysis ◽

Business Entities ◽

Economic Crimes

The article analyzes the features of the criminological characteristics of the manifestations of the shadow economy. The essence of the concept of “shadow economy” and its characteristic are investigated. As a result, it turned out that the shadow economy is one of the biggest obstacles to the development of the country's competitiveness, the growth of social standards of living of the population and integration into the European community. It is a reflection of the active criminalization of economic processes, the high corruption of state authorities and the low legal and tax culture of legal entities and individuals. The study found that the shadow economy gives rise to economic crime, which is harming the economic interests of the state and citizens protected by law, through theft, economic and mercenary official crimes. Statistical data of the General Prosecutor's Office of Ukraine for recent years are analyzed. Based on the results, it is established that a tendency towards an increase in the severity of economic crimes is observed in the country. Analysis of crimes in the field of economic activity (by types of economic crimes) indicates an increase in tax evasion, misuse of budget funds, etc. So, criminological studies indicate the growing urgency of economic crime in the country. Criminological theory is investigated, persons who commit economic crimes, their relationship between men and women and areas of professional activity are examined and characterized. According to the results of the study, it was found that in the structure of economic crimes, a third are attacks against property, and almost half are criminal acts using official powers. The urgent issue is the prevention of economic crimes, effective and more specific are criminological preventive measures, which include the performance by the relevant authorities of inspections for the implementation of commodity-money transactions by business entities, it is advisable to use budgetary funds, legally conduct operational search activities in in order to counter the legalization (laundering) of proceeds from crime, and more. Only with strict observance of all procedural rules and the rule of law, is it possible to overcome the country's shadow economy.

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SHADOW ECONOMY AND CORRUPTION AS A FORM OF ECONOMIC CRIME

Криминологический журнал Байкальского государственного университета экономики и права ◽

10.17150/1996-7756.2014.8(4).65-74 ◽

2014 ◽

pp. 65-74

Author(s):

Виталий Буров ◽

Николай Атанов ◽

Валерий Андриянов ◽

Татьяна Судакова

Keyword(s):

Shadow Economy ◽

Economic Crime

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Contemporary Scales of the Shadow Economy in Kazakhstan

Journal of Advanced Research in Law and Economics ◽

10.14505/jarle.v11.2(48).20 ◽

2020 ◽

Vol 11 (2) ◽

pp. 475

Author(s):

Zhamilya KYDYROVA ◽

Erlan ONLASYNOV ◽

Aigul SHADIEVA ◽

Akmaral ABDRAKHMANOVA ◽

Altynsary UMBITALIEV ◽

...

Keyword(s):

Law Enforcement ◽

Market Economy ◽

Shadow Economy ◽

Private Property ◽

The State ◽

Economic Crime ◽

Coordination Mechanism ◽

Economic Science ◽

Law Enforcement Agencies ◽

The Impact

The issues of the general reasons for the existence of the shadow economy and the factors that determined its enormous scale in the contemporary realities of the economic system of Kazakhstan are the subject of consideration of many researchers. However, the authors try to evaluate the results of development programs and the activity of bodies contributing to the modernization of economic policy aimed at structural changes in the policy of counteracting the shadow economy, which have been previously considered ambiguously. The main attention of the authors is given to the study of the phenomenon of ‘shadow economy’ as a special segment of a market economy, as well as to the development of practical recommendations for minimizing the disruptive mechanism’s consequences of shadow activity in the post-socialist period. The impact of the shadow economy on the financial and economic development and security of Kazakhstan are comprehensively studied for understanding the scales of the phenomenon. The authors analyze anthropological factors associated with the contradictory nature of man, economic factors inherent in the market economy and distortions in the state tax policy, insufficient saturation of the market with goods and services, imbalance between various spheres and sectors of the national economy, and low purchasing power of the population. The focus is made on legal factors that have arisen due to the imperfection of the legislative framework and coordination mechanism for combating economic crime, the insufficient activity of law enforcement agencies in the sphere of suppression of illegal and criminal economic activity. The main reasons for the permanent strengthening of shadow activity in the modern economy of Kazakhstan are identified in their direct interrelation with the features of the national model of economic reform. These reasons include: the insecurity of small and medium private property rights from the arbitrariness of the state, the illegal nature of privatization, the dominance of monopolies in the economy and the repressive nature of taxation, etc. These factors have generated not only the traditional shadow activity in Kazakhstan, but the other forms have appeared: labor activity without official registration; manipulations with securities issued by ‘quasi-private’ structures; forceful elimination of competition by regulatory and law enforcement agencies in favor of certain companies and the export of capital from the country according to offshore schemes and technologies, etc. The results of the study on the degree of influence of the features of reforming the Kazakhstani economy on the development of shadow activity make a certain contribution to the study of the phenomenon of the shadow economy in Economic Science. The situation with the spread of the pandemic has once again demonstrated the scale of the shadow economy, the level of corruption of power structures and the steady growth of shadow capital in the country.

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THE IMPACTS OF CUSTOMERS’ DELAY-RISK SENSITIVITIES ON A QUEUE WITH BALKING

Probability in the Engineering and Informational Sciences ◽

10.1017/s0269964809000254 ◽

2009 ◽

Vol 23 (3) ◽

pp. 409-432 ◽

Cited By ~ 7

Author(s):

Pengfei Guo ◽

Paul Zipkin

Keyword(s):

Cost Function ◽

Utility Function ◽

Value Of Information ◽

Queueing System ◽

Specific Weight ◽

Stochastic Orders ◽

Factors Affecting ◽

Equilibrium Behavior ◽

Weight Distributions ◽

The Relationship

Congestion and its uncertainty are big factors affecting customers’ decision to join a queue or balk. In a queueing system, congestion itself is resulted from the aggregate joining behavior of other customers. Therefore, the property of the whole group of arriving customers affects the equilibrium behavior of the queue. In this paper, we assume each individual customer has a utility function which includes a basic cost function, common to all customers, and a customer-specific weight measuring sensitivity to delay. We investigate the impacts on the average customer utility and the throughput of the queueing system of different cost functions and weight distributions. Specifically, we compare systems where these parameters are related by various stochastic orders, under different information scenarios. We also explore the relationship between customer characteristics and the value of information.

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PREVENTIONAL AUDIT: IMPLEMENTATION OF SOX CONTROL TO PREVENT FRAUD

Verslas teorija ir praktika ◽

10.3846/btp.2020.11647 ◽

2020 ◽

Vol 21 (1) ◽

pp. 293-301 ◽

Cited By ~ 1

Author(s):

Karina Nazarova ◽

Viktoriia Mysiuk ◽

Volodimir Gordopolov ◽

Viktor Koval ◽

Irena Danilevičienė

Keyword(s):

Open Economy ◽

Shadow Economy ◽

Preventive Measures ◽

Developed Countries ◽

The United States ◽

Economic Crime ◽

Enterprise Management ◽

Financial Fraud ◽

Control Mechanisms ◽

Corporate Fraud

The Euro-integration vector of Ukraine economic development and business in the open economy zone expands the economic and social potential of domestic enterprises and requires the formation of a reliable information environment to ensure the corporate interests of their investors (in the first) and other users of information (in particular). Today, corporate fraud is the most widespread form of economic crime in Ukraine and the world, which affects about 48% of domestic enterprises. The study attracted substantiated attention to the negative tendency towards the growth of economic crime in Ukraine, which in the end focuses on the fact that domestic business should apply a set of measures to withdraw part of the business from the “shadow economy”. As a result, such measures will help increase the attractiveness of Ukraine’s business investment. The study systematized and analyzed the progressive experience of developed countries, in the first place, the United States, in the fight against economic fraud. The study provides all grounds for asserting that it is quite feasible to achieve the tangible reduction of economic (financial) fraud with preventive measures (which is rather quick and effective). It is proved that the lack of aspirations of the enterprise management to overcome fraud leads to the formation of new money laundering schemes, and not control mechanisms – prevention of opportunities for committing fraud.

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Economic and Financial Crimes and the Development of Society

10.5772/intechopen.96269 ◽

2021 ◽

Author(s):

Monica Violeta Achim ◽

Sorin Nicolae Borlea ◽

Viorela Ligia Văidean ◽

Decebal Remus Florescu ◽

Eugenia Ramona Mara ◽

...

Keyword(s):

European Union ◽

Human Development ◽

Money Laundering ◽

Tax Evasion ◽

Shadow Economy ◽

Economic Crime ◽

The European Union ◽

Economic Prosperity ◽

Financial Crimes ◽

Negative Effect

The purpose of this chapter is to study the detailed dynamics of economic and financial crimes within the European Union member states, namely corruption, shadow economy, tax evasion, money laundering, cybercrime and financial frauds. Our econometric modelling focuses on the impact of the vector of financial and economic crime proxies upon economic prosperity and human development. In accordance to the reviewed literature, for our sample of European Union countries, corruption and shadow economy have a negative effect upon the vector of development proxies while money laundering and cybercrimes belonging to “white collars” are positively correlated with the vector of development proxies that we analyze. All the data are interpreted and discussed, and then conclusions are drawn. Governmental policies on economic prosperity and societal wellbeing should focus on reducing corruption and shadow economy, in order to favour benefits in the field of economic and human development.

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Analysis of the Presence of Criminal Offenses in the Field of the Shadow Economy in Serbia

Lex localis - Journal of Local Self-Government ◽

10.4335/19.1.131-147(2021) ◽

2021 ◽

Vol 19 (1) ◽

pp. 131-147

Author(s):

Snezana Knezevic ◽

Dragan Cvetkovic ◽

Marija Micovic ◽

Aleksandra Mitrović ◽

Stefan Milojević

Keyword(s):

Economic Activity ◽

Shadow Economy ◽

Economic Crime ◽

Material Damage ◽

Structure And Dynamics ◽

Criminal Offenses ◽

The Republic ◽

Almost All ◽

Budget Revenue

The shadow economy offenses are a group of offenses with a wide variety of manifestations occurring in almost all areas of economic activity. The shadow economy, as a special form of economic crime, is increasingly disrupting the smooth functioning of the economy, but also causing significant material damage to society. The Republic of Serbia is making efforts to curb the shadow economy, which significantly reduces its budget revenue. In this paper, after conceptual determination of the shadow economy phenomena in the literature review, determining the causes and manifestations of crimes in the field of the shadow economy, we will analyze their volume, structure and dynamics, as well as their participation in the mass of total, i.e. economic crime in the Republic of Serbia from 2006 to in 2018. The aim of this paper is to emphasize the extreme importance of more appropriate involvement of competent authorities in order to combat this type of crime in modern economies by analyzing the causes and effects as well as the dynamics of this phenomenon.

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