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Estimating the Size of the Danish Shadow Economy Using the Currency Demand Approach: An Attempt

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Author Info
Schneider, Friedrich

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Abstract

The currency demand approach pro vides some insight into the size anddevelopment of the shadow economy in Denmar k. Currency demand is statistically affected by tax rates. The difference in cur rency demand is calculated by comparing the actual tax burden over time to the l owest tax burden in the period 1952-82. The shadow economy grewsteadily to 10 p ercent (of GNP) in 1977 and then fluctuated between 7 and 10 percent (of GNP) fo r the period 1978-82. The calculated size fits nicely with the results obtained using the same method for Norway, Sweden, and West Germany. Copyright 1986 by The editors of the Scandinavian Journal of Economics.

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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 88 (1986)
Issue (Month): 4 ()
Pages: 643-68
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Handle: RePEc:bla:scandj:v:88:y:1986:i:4:p:643-68

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  1. Friedrich Schneider & Christopher Bajada, 2003. "The Size and Development of the Shadow Economies in the Asia-Pacific," Economics working papers 2003-01, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
  2. Sabirianova Peter, Klara, 2009. "Income Tax Flattening: Does It Help to Reduce the Shadow Economy?," IZA Discussion Papers 4223, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Albu, Lucian-Liviu & Daianu, Daniel & Pavelescu, Florin-Marius, 2002. "Underground economy quantitative models. Some applications to Romania’s case," MPRA Paper 14210, University Library of Munich, Germany. [Downloadable!]
  4. Friedrich Schneider, 2006. "Shadow Economies and Corruption All Over the World: What Do We Really Know?," IZA Discussion Papers 2315, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Buehn, Andreas & Schneider, Friedrich, 2009. "Corruption and the Shadow Economy: A Structural Equation Model Approach," IZA Discussion Papers 4182, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Friedrich Schneider, 2000. "Illegal activities, but still values added ones (?): size, causes, and measurement of the shadow economies all over the world," Economics working papers 2000-10, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  7. Friedrich Schneider, 2000. "Schattenwirtschaft - Tatbestand, Ursachen, Auswirkungen," Economics working papers 2000-07, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
  8. Friedrich Schneider, 2003. "Zunehmende Schattenwirtschaft in Deutschland: eine wirtschafts- und staatspolitische Herausforderung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 148-159.
  9. Diab Harb & Prasad S. Bhattacharya, 2008. "Revealing Australia’s Underground Economy," Economics Series 2008_05, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  10. Ernste, Dominik & Schneider, Friedrich, 1998. "Increasing Shadow Economies all over the World - Fiction or Reality?," IZA Discussion Papers 26, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Fethi Ogunc & Gokhan Yilmaz, 2000. "Estimating The Underground Economy In Turkey," Discussion Papers 0004, Research and Monetary Policy Department, Central Bank of the Republic of Turkey. [Downloadable!]
  12. Schneider, Friedrich, 2008. "The Shadow Economy in Germany - A Blessing or a Curse for the Official Economy?," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(1), pages 89-111, March. [Downloadable!]
  13. Schneider, Friedrich, 2000. "The Increase of the Size of the Shadow Economy of 18 OECD Countries: Some Preliminary Explanations," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  14. Breusch, Trevor, 2006. "Australia’s underground economy – redux?," MPRA Paper 1581, University Library of Munich, Germany. [Downloadable!]
  15. Schneider, Friedrich & Klinglmair, Robert, 2004. "Shadow Economies around the World: What Do We Know?," IZA Discussion Papers 1043, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  16. Schneider, Friedrich, 2004. "The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003," IZA Discussion Papers 1431, Institute for the Study of Labor (IZA). [Downloadable!]
  17. Andreas Bühn & Alexander Karmann & Friedrich Schneider, 2007. "Size and Development of the Shadow Economy and of Do-it-yourself Activities in Germany," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  18. Schneider, Friedrich, 2002. "The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries," IZA Discussion Papers 514, Institute for the Study of Labor (IZA). [Downloadable!]
  19. Ebrima Faal, 2003. "Currency Demand, the Underground Economy, and Tax Evasion: The Case of Guyana," IMF Working Papers 03/7, International Monetary Fund. [Downloadable!]
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