Shadow Economies around the World: New Results for 158 Countries over 1991-2015

Arbeitspapier

Using the MIMIC method, this paper is a first attempt to estimate the size of the shadow economy of 158 countries over the period 1991 up to 2015. In addition to performing a variety of robustness tests, this paper explicitly addresses endogeneity concerns to the use of GDP as cause and indicator, by using the light intensity approach as an indicator variable as proxy for the size of the economy. Results suggest that the average size of the shadow economy of these 158 countries over 1991-2015 is 32.5% of official GDP, which was 34.82% in 1991 and decreased to 30.66% in 2015.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6430

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models; Multiple Variables: Other ; Model Construction and Estimation ; Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access ; Structure, Scope, and Performance of Government ; Tax Evasion and Avoidance
• Subject: shadow economies of 158 countries ; MIMIC estimations ; the light intensity approach ; tax burden ; regulation ; trade openness ; corruption

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Medina, Leandro ; Schneider, Friedrich
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/161869
• Last update: 10.03.2025, 11:43 AM CET