Evaluating the Cash-in-Hand Consumer Culture in the European Union

What is it about?

To evaluate critically the assumption that consumers participating in cash-in-hand transactions are rational economic actors simply seeking a lower price, evidence from 26,659 interviews conducted in 27 European Union member states in 2007 is reported.

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Why is it important?

This reveals that a lower price is the sole reason for just 44% of all informal economy purchases, one of several reasons for 28% of such purchases and not a reason in 28% of cases. A multinomial logit regression analysis reveals how the reasons for cash-in-hand purchases vary across populations.

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