Estimating the size of Turkey's informal sector: an expenditure-based approach
AbstractAccurately measuring Turkey's informal sector is important for policymaking. We utilize household income-expenditure surveys to examine this sector's income underreporting. The Pissarides-Weber approach hypothesizes that data would reflect such underreporting as “excess food consumption”. Our results suggest informal sector members spend more than their formal sector counterparts with comparable reported income levels. Using this information, we estimate the average size of the true informal sector to be about 1.25 times the official estimate. The informal sector accounts for around 83% of officially reported disposable income. Therefore, true Turkish disposable income is (25%)*(83%), roughly 21% larger than the officially estimated magnitude.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.
Volume (Year): 11 (2008)
Issue (Month): 4 ()
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Web page: http://taylorandfrancis.metapress.com/link.asp?id=300262
Other versions of this item:
- Nurhan Davutyan, 2008. "Estimating the size of Turkey's informal sector: an expenditure-based approach," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(4), pages 261-271.
- Nurhan Davutyan, 2008. "Estimating The Size of Turkey’s Informal Sector: An Expenditure Based Approach," Working Papers 403, Economic Research Forum, revised May 2008.
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- HALICIOGLU, Ferda & Dell’Anno, Roberto, 2009.
"An ARDL model of unrecorded and recorded economies in Turkey,"
24982, University Library of Munich, Germany.
- Roberto Dell'Anno & Ferda Halicioglu, 2010. "An ARDL model of unrecorded and recorded economies in Turkey," Journal of Economic Studies, Emerald Group Publishing, vol. 37(6), pages 627-646, September.
- Armagan Tuna Aktuna Gunes & Christophe Starzec & François Gardes, 2013.
"A new estimation of the size of informal economy using monetary and full expenditures in a complete demand system,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Armagan Tuna Aktuna Gunes & Christophe Starzec & François Gardes, 2013. "A new estimation of the size of informal economy using monetary and full expenditures in a complete demand system," Documents de travail du Centre d'Economie de la Sorbonne 13053, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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