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An attempt to estimate the size of informal economy based on household behaviour modeling

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Author Info
Albu, Lucian-Liviu
Kim, Byung-Yeon
Duchene, Gerard

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Abstract

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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File URL: http://mpra.ub.uni-muenchen.de/13026/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13026.

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Date of creation: 31 Mar 2002
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Handle: RePEc:pra:mprapa:13026

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Related research
Keywords: Informal Economy; Estimation; Household's Behaviour;

Other versions of this item:

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

Cited by:
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  1. Albu, Lucian-Liviu & Nicolae, Mariana, 2003. "Use of households survey data to estimate the size of the informal economy in Romania," MPRA Paper 14286, University Library of Munich, Germany. [Downloadable!]
  2. Albu, Lucian Liviu, 2008. "A Model To Estimate Spatial Distribution Of Informal Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(4), pages 111-124, December. [Downloadable!]
  3. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany. [Downloadable!]
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