Mathematical models of unshadowing the wages
DOI:
https://doi.org/10.35774/visnyk2018.04.019Keywords:
shadow economy, official and shadow salaries, de-shadowing of salaries, tax rate.Abstract
The article addresses a social and economic phenomenon of shadow economy, which is typical for many countries and may result in a macroeconomic imbalance. The latter hinders the sustainable growth of the economy and leads to state budget losses. Shadow economy is penetrating into almost all sectors of the national economy. As shown in the paper, a high level of shadow economy is a threat to the national economic security of the country and a cause of declining its competitiveness. The findings confirm that measuring the impact of some factors of shadow economy on the economic security of the country is quite difficult. However, there are some factors for which mathematical models can be built to describe a correlation between economic indicators and a certain factor of shadow economy. Since salary expenses constitute a significant portion of enterprise’s basic expenses, it is important to build mathematical models for calculating the correlation between shadow salaries and tax rates.
Thus, the purpose of the article is to examine mathematical models of the correlation between official and shadow salaries and tax rates. The developed mathematical models demonstrate that a reduction of tax rates is followed by changes in a shadow part of salaries. The article describes a number of cases when there are no changes in salaries and tax revenues, as well as cases of pay increase.
The analysis finally suggests ways to increase salaries and techniques to de-shadow salaries. The authors use general scientific methods of generalization, comparison, analysis, and the method of mathematical modeling.
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