Estimating the Black Economy through a Monetary Approach: A Case Study of Pakistan
AbstractIn recent years, the black economy has held enormous appeal for policy makers. Presence of black economy creates critical misrepresentation of macroeconomic variables in official estimates that lead to the false determination and delusional impact of economic policies. Similarly, black economy represents the unrecorded potential of the economy vis-?-vis resource generation and mobilization. The Economy of Pakistan underwent several minor tax reforms since 1960?s. However, the tax and tariff reform of 1990?s, committed under international pressure, was the first comprehensive exercise and therefore it becomes highly desirable to gauge its impact on the black economy and tax evasion practices. This paper, with some modifications, uses the standard monetary approach to obtain the latest estimates of the size of black economy and its macroeconomic implications thereof.
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Bibliographic InfoArticle provided by Economic Issues in its journal Economic Issues.
Volume (Year): 13 (2008)
Issue (Month): 1 (March)
Other versions of this item:
- Hussain, M. Haider & Ahmed, Qazi Masood, 2006. "Estimating the Black Economy through Monetary Approach: A Case Study of Pakistan," MPRA Paper 8153, University Library of Munich, Germany.
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
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