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Under-reported income of Russian households

Author

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  • Murashov, Yaroslav
  • Ratnikova, Tatiana

Abstract

In the proposed paper, an attempt is made to estimate the proportion of unstated income for Russian households based on micro data. An overview of microeconomic approaches to estimating the scale of under-reported income is provided. These approaches are weakly represented in the national literature, so their strengths and weaknesses are also analyzed. A theoretical model of household consumer behavior is described that allows the size of under-reported income to be estimated. The structure of household incomes and expenditures is studied based on an RLMS sample for 2012. The model is estimated using household subsamples based on the type of household and household income. The estimation technique utilizes regression variables and random effects. The resulting subsample estimates were applied to the general population and compared with those obtained by other researchers using alternative methods and other data. A comparison is made to estimates of under-reported income developed for British households.

Suggested Citation

  • Murashov, Yaroslav & Ratnikova, Tatiana, 2016. "Under-reported income of Russian households," Russian Journal of Economics, Elsevier, vol. 2(1), pages 56-85.
    • Handle: RePEc:eee:rujoec:v:2:y:2016:i:1:p:56-85
    DOI: 10.1016/j.ruje.2016.04.004
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    References listed on IDEAS

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    1. François Gardes & Christophe Starzec, 2009. "Polish Households' behavior in the Regular and Informal Economies," Post-Print halshs-00375543, HAL.
    2. Panayiota Lyssiotou & Panos Pashardes & Thanasis Stengos, 2004. "Estimates of the black economy based on consumer demand approaches," Economic Journal, Royal Economic Society, vol. 114(497), pages 622-640, July.
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    4. Yuriy Gorodnichenko & Jorge Martinez-Vazquez & Klara Sabirianova Peter, 2009. "Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 504-554, June.
    5. François Gardes & Christophe Starzec, 2009. "Polish Households' Behavior in the Regular and Informal Economies," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1181-1210.
    6. François Gardes & Claude Montmarquette, 2002. "How Large is your Reference Group ?," Working Papers 2002-55, Center for Research in Economics and Statistics.
    7. Матыцин Михаил Сергеевич & Ершов Эмиль Борисович, 2012. "Исследование Дифференциации Российского Населения По Реальным Доходам," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 16(3), pages 318-340.
    8. Pissarides, Christopher A. & Weber, Guglielmo, 1989. "An expenditure-based estimate of Britain's black economy," Journal of Public Economics, Elsevier, vol. 39(1), pages 17-32, June.
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    Citations

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    Cited by:

    1. Kseniya Abanokova & Hai-Anh H. Dang, 2023. "Poverty in Russia: a bird’s-eye view of trends and dynamics in the past quarter of a century," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 58, pages 627-635, Edward Elgar Publishing.
    2. Novkovska, B. & Novkovski, N., 2018. "Energy consumption and hidden economy in Macedonia: Causes and responses," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 166-181.
    3. Nivorozhkina L.I. & Tregubova A.A. & Batashev R.V., 2018. "Influence οf Households’ Borrowings οn Consumer Spending During the Escalation of the Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 485-496.
    4. repec:ers:journl:v:xxi:y:2018:i:special2:p::c10,d14,g02,i32. is not listed on IDEAS
    5. Niizeki, Takeshi & Hamaaki, Junya, 2023. "Do the self-employed underreport their income? Evidence from Japanese panel data," Journal of the Japanese and International Economies, Elsevier, vol. 67(C).
    6. Murashov, Yaroslav & Ratnikova, Tatiana, 2017. "The dynamics of unrecorded income of Russian households," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 46, pages 30-54.
    7. Howe, E. Lance & Murphy, James J. & Gerkey, Drew & Stoddard, Olga B. & West, Colin Thor, 2023. "Sharing, social norms, and social distance: Experimental evidence from Russia and Western Alaska," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 345-358.

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    More about this item

    Keywords

    under-reported household income; household consumer behavior; under-reported income parameter; regression analyses; instruments; random effects;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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