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Defining and estimating underground and informal economies: The new institutional economics approach

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  • Feige, Edgar L.

Abstract

A taxonomy of underground economies is elaborated based on the new institutional approach to economic development. Members of formal sectors confront different sets of transformation and transaction costs than do members of informal sectors and these differences are regarded as crucial to the development process. The paper distinguishes illegal, unreported, unrecorded and informal economies and examines the conceptual and empirical linkages among them. Alternative micro and macro methodologies for measuring underground activities are reviewed and evaluated including census and survey procedures, discrepancies and monetary methods. To be published in World Development, Vol 18, No 7, 1990.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 18 (1990)
Issue (Month): 7 (July)
Pages: 989-1002

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Handle: RePEc:eee:wdevel:v:18:y:1990:i:7:p:989-1002

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Web page: http://www.elsevier.com/locate/worlddev

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  1. Edgar L. Feige & Robert T. McGee, 2005. "Policy Illusion, Macroeconomic Instability And The Unrecorded Economy," Macroeconomics 0501027, EconWPA.
  2. Portes, Alejandro & Blitzer, Silvia & Curtis, John, 1986. "The urban informal sector in Uruguay: Its internal structure, characteristics, and effects," World Development, Elsevier, vol. 14(6), pages 727-741, June.
  3. Chadeau, Ann, 1985. "Measuring Household Activities: Some International Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(3), pages 237-53, September.
  4. Peattie, Lisa, 1987. "An idea in good currency and how it grew: The informal sector," World Development, Elsevier, vol. 15(7), pages 851-860, July.
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