W ORKI NG P APER NO . 207 The Impact of Banking Development on the Size of the Shadow Economy Niloy Bose, Salvatore Capasso and Martin Wurm October 2008 University of Naples Federico I I University of Salerno Bocconi University, Milan CSEF - Centre for Studies in Economics and Finance – UNI VERSI TY OF SALERNO 84084 FISCIANO (SA) - ITALY Tel. +39 089 96 3167/ 3168 - Fax +39 089 96 3167 – e-mail: csef@unisa.it