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Causes And Size Of Informal Economy In Romania

Author

Listed:
  • Pelinescu, Elena

    () (Institute for Economic Forecasting, Romanian Academy, Bucharest)

Abstract

The paper aims to analyze the causes or the motivations of the households’ informal economy activities and to estimate the size of the Romanian informal economy. Using data for Romania, it was found that people perceived high taxes as the main cause of the informal activities. The data suggested that the subsistence motive represented the main reason for the households’ decision to operate in the informal economy. It was found that 36.1% of the interviewed households had incomes from a secondary job in 1996. The size of informal economy appears as different because of the method used for computation.

Suggested Citation

  • Pelinescu, Elena, 2003. "Causes And Size Of Informal Economy In Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 86-97, June.
  • Handle: RePEc:rjr:romjef:v::y:2003:i:1:p:86-97
    as

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    More about this item

    Keywords

    informal economy; decent income; taxation;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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