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

Ihor Hurnyak; Aleksandra Kordonska

doi:10.2478/cer-2018-0012

Authors

Ihor Hurnyak Faculty of International Relations, Ivan Franko National University of Lviv, Lviv, Ukraine
Aleksandra Kordonska Institute of Political Science, University of Warmia and Mazury in Olsztyn, Olsztyn, Poland

DOI:

https://doi.org/10.2478/cer-2018-0012

Keywords:

taste of life, shadow economy, decentralization, state authority services, community

Abstract

The issue of measuring the “taste of life” is one of the main tasks in the proces 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.

Downloads

Download data is not yet available.

References

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

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.
Google Scholar

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

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.
Google Scholar

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

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

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.
Google Scholar

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

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.
Google Scholar

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.
Google Scholar

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.
Google Scholar

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

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

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

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.
Google Scholar

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