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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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  • Boriss Siliverstovs
  • Konstantin A. Kholodilin
  • Vyacheslav Dombrovsky

Abstract

type="main"> We suggest using 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. According to Eurostat, the officially published estimate of the Gini coefficient for Latvia is 0.374 for 2009, which is much higher than the Gini coefficient value reported for all the 27 EU member countries (0.304), but significantly lower than 0.48 according to our results.

Suggested Citation

  • Boriss Siliverstovs & Konstantin A. Kholodilin & Vyacheslav Dombrovsky, 2014. "Using Personal Car Register for Measuring Economic Inequality in Countries with a Large Share of Shadow Economy: Evidence for Latvia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 948-966, December.
  • Handle: RePEc:bla:revinw:v:60:y:2014:i:4:p:948-966
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    File URL: http://hdl.handle.net/10.1111/roiw.12011
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    References listed on IDEAS

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    1. Friedrich Schneider & Andreas Buehn & Claudio E. Montenegro, 2011. "Shadow Economies All Over the World: New Estimates for 162 Countries from 1999 to 2007," Chapters,in: Handbook on the Shadow Economy, chapter 1 Edward Elgar Publishing.
    2. Boriss Siliverstovs & Konstantin Kholodilin, 2012. "Measuring Regional Inequality by Internet Car Price Advertisements: Evidence for Germany," ERSA conference papers ersa12p911, European Regional Science Association.
    3. Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September.
    4. 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.
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    Cited by:

    1. Braguinsky, Serguey & Mityakov, Sergey, 2015. "Foreign corporations and the culture of transparency: Evidence from Russian administrative data," Journal of Financial Economics, Elsevier, vol. 117(1), pages 139-164.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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