Having in view the three main methods for the estimation of the informal economy's size, the study focuses in the first part on data and methodological problems, trying at the same time to outline a few behavioral aspects by using only simple simulation models. Thus, based on a 288-sample and using different types of computations, the authors describe the households' participation in informal activities as varying between 20.4% and 30.6%. In the second part of the article, some more sophisticated dynamic models to simulate very complicated types of household behavior relating to participation in secondary activities and in informal economy are presented.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
13026.
Find related papers by JEL classification: C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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