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Size and scope of the underground economy in Germany

[journal article]

Pickhardt, Michael; Sardà Pons, Jordi

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Abstract The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e., currency demand and MIMIC. The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.
Classification Political Economy; Economic Statistics, Econometrics, Business Informatics
Free Keywords Underground Economy; Shadow Economy; Tax Evasion
Document language English
Publication Year 2006
Page/Pages p. 1707-1713
Journal Applied Economics, 38 (2006) 14
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)