The “Taste of Life” as a Mechanism of Overcoming Corruption

Open access

Abstract

The issue of measuring the “taste of life” is one of the main tasks in the process of management decentralization in the state. The term “taste of life” is considered to be the degree of an individual’s satisfaction from living, functioning and carrying out his own activity in society in accordance with economic rules and orders. To solve this problem, three approaches were applied by considering the “taste of life” as a function of state authorities’ services, shadow activity and communal budget. Based on mathematical modelling and the results of expert surveys in 50 communities in the Ukrainian environment, authors made an attempt to identify the degree of state’s regularities in society and to test the constructed models. According to the results, a higher “taste” on the basis of state services caused a decrease in the likelihood of a person returning after the possibility of working and living abroad. The higher “taste” caused the smaller sensitivity to institutes of the shadow economy. At the same time, the “taste” on the basis of shadow services correlates negatively with sensitivity to the state’s official engagement in business and penalties for informal activity. So, the higher this segment, the smaller the sensitivity. The behavior of those who consider communal services and the work of the community as a basic variable is quite different. The “taste” on the basis of community services cannot explain the sensitivity to the shadow institutes and dynamics of emigration. Consequently, decentralization is a way of overcoming corruption.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Bhattacharyya D. K. (1999) On the economic rationale of estimating the hidden economy ʽEconomic Journalʼ Royal Economic Society No. 109 pp. 348-359.

  • Buehn A. Karmann A. Schneider F. (2009) Shadow Economy and Do-it-yourself Activities: The German Case ʽJournal of Institutional and Theoretical Economicsʼ Mohr Siebeck GmbH & Co. KG No. 165(4) pp. 701-722.

  • Dell’Anno R. (2007) The Shadow Economy in Portugal: An Analysis with the MIMIC Approach. Journal of Applied Economics No. 10 pp. 253-277.

  • Dell’Anno R. Gomez-Antonio M. Alanon Pardo A. (2007) Shadow Economy in three different Mediterranean Countries: France Spain and Greece. A MIMIC Approach ʽEmpirical Economics ʼ Springer-Verlag No. 33(1) pp. 51-84.

  • Dlouhý M. (2014) Models of subsidy allocation among city districts ʽPrague Economic Papersʼ University of Economics Prague No. 1 pp. 108-120.

  • Dreher A. Schneider F. (2009) Corruption and the Shadow Economy: An Empirical Analysis ʽPublic Choiceʼ Springer US No. 144(2) pp. 215-277.

  • Edelenbos J. Meerkerk I. Schenk T. (2016) The evolution of community self-organization in interaction with government institutions. Cross-case insights from three countries Erasmus University Rotterdam Rotterdam.

  • Feige E. L. (1994) The Underground Economy and the Currency Enigma Supplement to Public Finance ʽFinances Publiquesʼ No. 49 pp. 119-136.

  • Frey B. S. Pommerehne W. (1984) The Hidden Economy: State and Prospect for Measurement ‘Review of Income and Wealth’ No. 30(1) pp. 1-23.

  • Friedman E. Johnson S. Kaufmann D. Zoido-Lobaton P. (2000) Dodging the Grabbing Hand: the Determinants of Unofficial Activity in 69 Countries ʽJournal of Public Economicsʼ No. 76 pp. 459-93.

  • Gerxhani K. (2003) The informal sector in developed and less-developed countries: A literature survey. ʽPublic Choiceʼ Springer US No. 114(3-4) pp. 295-318.

  • Schneider F. (2005) Shadow Economies around the World: What Do We Really Know? ʽEuropean Journal of Political Economyʼ No. 21(4) pp. 598-642.

  • Singh A. Jain-Chandra S. Mohommad A. (2012) Inclusive Growth Institutions and the Underground Economy ‘IMF Working Paper’ WP/12/47 pp. 9-13.

  • Varian H. R. (2010) Intermediate Microeconomics. A Modern Approach W. W. Norton & Company New York 806.

  • Wan Abdul Aziz R. Shuib A. Nawawi A. H. Mohd Tawil N. (2015) Mathematical Model for Budget Planning and Execution ʽJournal of Industrial and Intelligent Informationʼ No. 3(2) pp. 91-96.

  • Wolfram Math World Central Limit Theorem Retrieved from http://mathworld.wolfram.com/CentralLimitTheorem.html.

Search
Journal information
Impact Factor


CiteScore 2018: 0.46

SCImago Journal Rank (SJR) 2018: 0.241
Source Normalized Impact per Paper (SNIP) 2018: 0.366

Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 328 209 4
PDF Downloads 183 130 3