Nonparametric expenditure-based estimation of income under-reporting and the underground economy
AbstractThere is considerable interest in measuring the underground economy using microeconomic data. One such method estimates income under-reporting by households by assuming a known, parametric form of the Engel curve and making the further parametric assumption that households under-report their income by a constant fraction, independent of income. This paper proposes a nonparametric approach which avoids functional form restrictions and enables the reporting function to vary across income levels and household characteristics. I illustrate by estimating the effect of the Canadian Goods and Services Tax on income under-reporting.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2004-17.
Length: 38 pages
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.economics.mcmaster.ca/
More information through EDIRC
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lindsay M. Tedds, 2005. "Keeping It Off The Books: An Empirical Investigation Into the Characteristics of Firms That Engage In Tax Non-Compliance," Department of Economics Working Papers 2005-01, McMaster University.
- Karine Torosyan & Randall K. Filer, 2012.
"Tax Reform in Georgia and the Size of the Shadow Economy,"
Economics Working Paper Archive at Hunter College, Hunter College Department of Economics
439, Hunter College Department of Economics.
- Karine Torosyan & Randall K. Filer, 2014. "Tax reform in Georgia and the size of the shadow economy," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 22(1), pages 179-210, 01.
- Torosyan, Karine & Filer, Randall K., 2012. "Tax Reform in Georgia and the Size of the Shadow Economy," IZA Discussion Papers 6912, Institute for the Study of Labor (IZA).
- Per Engstrom & Bertil Holmlund, 2009.
"Tax evasion and self-employment in a high-tax country: evidence from Sweden,"
Applied Economics, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 41(19), pages 2419-2430.
- Engström, Per & Holmlund, Bertil, 2006. "Tax Evasion and Self-Employment in a High-Tax Country: Evidence from Sweden," Working Paper Series, Uppsala University, Department of Economics 2006:12, Uppsala University, Department of Economics.
- Per Engström & Bertil Holmlund, 2006. "Tax Evasion and Self-Employment in a High-Tax Country: Evidence from Sweden," CESifo Working Paper Series 1736, CESifo Group Munich.
- Tonin, Mirco, 2011.
"Minimum Wage and Tax Evasion: Theory and Evidence,"
IZA Discussion Papers
5660, Institute for the Study of Labor (IZA).
- Mirco Tonin, 2007. "Minimum Wage and Tax Evasion: Theory and Evidence," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan wp865, William Davidson Institute at the University of Michigan.
- Mirco Tonin, 2009. "Minimumwage and tax evasion: theory and evidence," MNB Working Papers, Magyar Nemzeti Bank (the central bank of Hungary) 2009/2, Magyar Nemzeti Bank (the central bank of Hungary).
- Mirco Tonin, 2007. "Minimum Wage and Tax Evasion: Theory and Evidence," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 0701, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Knut R. Wangen, 2005. "An Expenditure Based Estimate of Britain's Black Economy Revisited," Discussion Papers, Research Department of Statistics Norway 414, Research Department of Statistics Norway.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.