Arbeitspapier

Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions

This paper presents various methods for estimating the size of the shadow economy and analyzes their strengths and weaknesses. The purpose of the paper is twofold. Firstly, it demonstrates that no ideal method exists to estimate the size and development of the shadow economy. Because of its flexibility, the MIMIC method used to get macro-estimates of the size of the shadow economy is discussed in greater detail. Secondly, the paper focuses on the definition and causal factors of the shadow economy and provides a comparison of the size of the shadow economy using different estimation methods.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 9820

Classification
Wirtschaft
Positive Analysis of Policy Formulation and Implementation
Informal Economy; Underground Economy
Structure, Scope, and Performance of Government
Tax Evasion and Avoidance
Illegal Behavior and the Enforcement of Law
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Subject
MIMIC approach
methods to estimate the shadow economy
advantages and disadvantages of the measurement methods
shadow economy estimates

Event
Geistige Schöpfung
(who)
Schneider, Friedrich
Buehn, Andreas
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schneider, Friedrich
  • Buehn, Andreas
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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