chapter  10
Shadow Economy: The Hungarian Case
WithISTVAN MOLNAR, PAL BELYO
Pages 29

The shadow economy or underground economy (also called black, “informal,” “second,” “cash,” or “parallel” economy or simply “black market”) is a complex economic phenomenon. This economy includes, but is not restricted to, illegal business activities like drug dealing, prostitution, gambling, money laundering, and illegal production of goods and services. A signifi cant common characteristic of these activities is that they rely on cash payments and tax avoidance, so that business transactions would be hard or impossible to trace.