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Using Personal Car Register for Measuring Economic Inequality in Countries with a Large Share of Shadow Economy: Evidence for Latvia

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Abstract

We suggest to use information from the state register of personal cars as an alternative indicator of economic inequality in countries with a large share of shadow economy. We illustrate our approach using the Latvian pool of personal cars. Our main finding is that the extent of household economic inequality in Latvia is much larger than officially assumed. The latest officially available estimate of the Gini coefficient is 0.36 for 2005, which is much lower than 0.55 for 2009 reported in our paper.

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File URL: http://www.kof.ethz.ch/publications/science/pdf/wp_287.pdf
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Bibliographic Info

Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 11-287.

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Length: 9 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:kof:wpskof:11-287

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Keywords: Economic inequality; cars; social signaling; Gini index; Latvia;

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  1. Friedrich Schneider & Andreas Buehn & Claudio E. Montenegro, 2010. "Shadow Economies All over the World: New Estimates for 162 Countries from 1999 to 2007," Working Papers wp322, University of Chile, Department of Economics.
  2. Kholodilin, Konstantin A. & Siliverstovs, Boriss, 2012. "Measuring regional inequality by internet car price advertisements: Evidence for Germany," Economics Letters, Elsevier, vol. 116(3), pages 414-417.
  3. Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September.
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