This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Does taking the shadow economy into account matter to measure aggregate efficiency?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Pierre-Guillaume Méon () (DULBEA, Université libre de Bruxelles, Brussels)
Friedrich Schneider () (Department of Economics, Austria.)
Laurent Weill () (Université Robert Schuman, Institut d’Etudes Politiques, Strasbourg)

Additional information is available for the following registered author(s):

Abstract

We analyze how adding the shadow economy to official output figures affects estimated technical efficiency at the country level. We find that this only slightly affects the ranking of efficiency scores, but increases average efficiency in a sample of 87 to 97 countries, both developed and developing. Our results are robust to the functional form of the production technology and the adjustment of labour to account for years of schooling.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dev.ulb.ac.be/dulbea/documents/1141.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its series Working Papers DULBEA with number 07-18.RS.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 26 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:dul:wpaper:07-18rs

Contact details of provider:
Web page: http://www.dulbea.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Pierre-Guillaume Méon).

Related research
Keywords: shadow economy; income; aggregate productivity; efficiency.;

Other versions of this item:

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Livingstone, Ian, 1991. "A reassessment of Kenya's rural and urban informal sector," World Development, Elsevier, vol. 19(6), pages 651-670, June. [Downloadable!] (restricted)
  2. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "Women and Competition in Elimination Tournaments: Evidence from Professional Tennis Data," Working Papers DULBEA 05-19.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  3. Friedrich Schneider, 2005. "Shadow Economies of 145 Countries all over the World: What Do We Really Know?," CREMA Working Paper Series 2005-13, Center for Research in Economics, Management and the Arts (CREMA). [Downloadable!]
  4. Emanuele Ciriolo, 2005. "Inequity aversion and trustees’ reciprocity in the trust game," Working Papers DULBEA 05-20.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  5. Didier Baudewyns & Benoït Bayenet & Robert Plasman & Catherine Van den Steen, 2006. "Impact de la fiscalité et des dépenses communales sur la localisation intra-métropolitaine des entreprises et des ménages : Bruxelles et sa périphérie," Working Papers DULBEA 06-08.RR, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  6. Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc. [Downloadable!]
  7. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "Wage structure and firm productivity in Belgium," Working Papers DULBEA 05-14.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  8. Ariane Chapelle & Ariane Szafarz, 2005. "Controlling firms through the Majority Voting Rule," Working Papers CEB 05-004.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  9. Pierre-Guillaume Méon & Laurent Weill, 2005. "Can mergers in Europe help banks hedge against macroeconomic risk?," Applied Financial Economics, Taylor and Francis Journals, vol. 15(5), pages 315-326, March. [Downloadable!] (restricted)
    Other versions:
  10. Pierre-Guillaume Méon & Laurent Weill, 2004. "Does better governance foster efficiency? An aggregate frontier analysis," Economics of Governance, Springer, vol. 6(1), pages 75-90, January. [Downloadable!] (restricted)
  11. Giles, David E A, 1999. "The Rise and Fall of the New Zealand Underground Economy: Are the Responses Symmetric?," Applied Economics Letters, Taylor and Francis Journals, vol. 6(3), pages 185-89, March. [Downloadable!] (restricted)
  12. Brenda Gannon & Robert Plasman & François Rycx & Ilan Tojerow, 2005. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," IZA Discussion Papers 1563, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "The Establishment-Size Wage Premium: Evidence from European Countries," IZA Discussion Papers 1569, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  14. Robert Plasman & Michael Rusinek & François Rycx, 2006. "Wages and the Bargaining Regime under Multi-level Bargaining: Belgium, Denmark and Spain," IZA Discussion Papers 1990, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  15. David E. A. Giles, 1999. "Modelling the hidden economy and the tax-gap in New Zealand," Empirical Economics, Springer, vol. 24(4), pages 621-640. [Downloadable!] (restricted)
    Other versions:
  16. Etienne Farvaque & Norimichi Matsueda & Pierre-Guillaume Méon, 2007. "How committees reduce the volatility of policy rates," Working Papers DULBEA 07-11.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  17. Michele Cincera, 2005. "The link between firms’ R&D by type of activity and source of funding and the decision to patent," Working Papers DULBEA 05-10.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  18. Schneider, Friedrich, 2005. "Shadow economies around the world: what do we really know?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 598-642, September. [Downloadable!] (restricted)
    Other versions:
  19. Verena Bikar & Michele Cincera & Henri Capron, 2006. "An Integrated Evaluation Scheme of Innovation Systems from an Institutional Perspective," Working Papers DULBEA 06-09.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  20. Régis Blazy & Laurent Weill, 2007. "The Impact of Legal Sanctions on Moral Hazard when Debt Contracts are Renegotiable," Working Papers CEB 07-012.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  21. Khalid Sekkat & Marie-Ange Veganzones-Varoudakis, 2005. "Trade and Foreign Exchange Liberalization, Investment Climate and FDI in the MENA," Working Papers DULBEA 05-06.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  22. Olga Bourachnikova, 2007. "Weighting Function in the Behavioral Portfolio Theory," Working Papers CEB 07-011.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  23. Prescott, Edward C, 1998. "Needed: A Theory of Total Factor Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 525-51, August.
    Other versions:
  24. Michel Beine & Oscar Bernal & Jean-Yves Gnabo & Christelle Lecourt, 2006. "Intervention Policy of the BoJ: A unified approach," Working Papers DULBEA 06-15.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  25. Sîle O'DOrchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries:How large is it for men?," Working Papers DULBEA 07-02.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  26. Giles, David E A, 1999. "Measuring the Hidden Economy: Implications for Econometric Modelling," Economic Journal, Royal Economic Society, vol. 109(456), pages F370-80, June. [Downloadable!] (restricted)
    Other versions:
  27. Michele Cincera & Lydia Greunz & Jean-Luc Guyot & Olivier Lohest, 2006. "Capital humain et processus de création d’entreprise : le cas des primo-créateurs wallons," Working Papers DULBEA 06-11.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  28. Thibault Biebuyck & Ariane Chapelle & Ariane Szafarz, 2002. "Les leviers de contrôle des actionnaires majoritaires," Working Papers CEB 03-001.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  29. MArc Levy, 2007. "Control in Pyramidal Structures," Working Papers DULBEA 07-08.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  30. Maria Jepsen & Sile O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," Brussels Economic Review/Cahiers Economiques de Bruxelles, Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA), vol. 48(1-2), pages 73-94.
    Other versions:
  31. Robert Plasman & Michael Rusinek & Ilan Tojerow, 2007. "La régionalisation de la négociation salariale en Belgique : vraie nécessité ou faux débat ?," Working Papers DULBEA 07-04.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  32. Friedrich Schneider & Dominik H. Enste, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March. [Downloadable!] (restricted)
  33. Pierre-Guillaume Méon & Anne-France Delannay, 2006. "The impact of European integration on the nineties’ wave of mergers and acquisitions," Working Papers DULBEA 06-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  34. Pierre-Guillaume Méon & Khalid Sekkat, 2006. "Institutional quality and trade: which institutions? which trade?," Working Papers DULBEA 06-06.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  35. Marie Pfiffelmann, 2007. "Which optimal design for lottery linked deposit," Working Papers DULBEA 07-09.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  36. Michel Beine & Pierre-Yves Preumont & Ariane Szafarz, 2006. "Sector diversification during crises: A European perspective," Working Papers DULBEA 06-07.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  37. Michel Beine & Oscar Bernal, 2005. "Why do central banks intervene secretly? Preliminary evidence from the BoJ," Working Papers DULBEA 05-09.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Benoît Mahy & François Rycx & Mélanie Volral, 2008. "L’influence de la dispersion salariale sur la performance des grandes entreprises belges," Working Papers DULBEA 08-13.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  2. Abdeslam Marfouk, 2008. "The African Brain Drain: Scope and Determinants," Working Papers DULBEA 08-07.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  3. Hassan Ayoub & Jérôme Creel & Etienne Farvaque, 2008. "Détermination du niveau des prix et finances: le cas du Liban, 1965-2005," Working Papers DULBEA 08-10.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  4. Olivier Debande & Jean-Luc De Meulemeester, 2008. "Quality and variety competition in higher education," Working Papers DULBEA 08-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  5. Ilan Tojerow, 2008. "Industry Wage Differential, Rent Sharing and Gender in Belgium," Working Papers DULBEA 08-20.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  6. Ariane Szafarz, 2007. "Hiring People-like-Yourself: A Representation of Discrimination on the Job Market," Working Papers DULBEA 07-21.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  7. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," Working Papers DULBEA 09-03.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
Statistics
Access and download statistics

Did you know? About 1000 journals are listed on RePEc.

This page was last updated on 2009-11-21.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.