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Estimating Hidden Economy and Hidden Migration: The Case of Romania

Author

Listed:
  • Albu, Lucian Liviu

    () (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania, Correspondig Member of the Romanian Academy)

  • Iorgulescu, Raluca

    (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania)

  • Stanica, Cristian

    () (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania)

Abstract

Economists have already established a relationship between tax rates and size of the hidden economy. The higher the level of taxation is, the greater the incentive to participate in hidden activity and escape taxes is. On the one hand, coming from generally accepted findings of the theory, we concentrate on evaluating the reasons for agents’ involvement in hidden economy and estimating the size of this part of economy in the case of Romania. At the same time, there is evidence of an extended hidden migration together with an increase in the official migration data, usually from eastern EU members to western countries. In a sense, hidden migration could be in relation to proper hidden economy. On the other hand, using some indirect procedures, we try to estimate the size of hidden migration in Romania.

Suggested Citation

  • Albu, Lucian Liviu & Iorgulescu, Raluca & Stanica, Cristian, 2010. "Estimating Hidden Economy and Hidden Migration: The Case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 46-56, July.
  • Handle: RePEc:rjr:romjef:v::y:2010:i:2:p:46-56
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    File URL: http://www.ipe.ro/rjef/rjef2_10/rjef2_10_3.pdf
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    References listed on IDEAS

    as
    1. Albu, Lucian Liviu, 2007. "Estimating the Size of Underground Economy in Romania," Working Papers of Institute for Economic Forecasting 070601, Institute for Economic Forecasting.
    2. Albu, Lucian Liviu & Kim, Byung Yeon & Duchene, Gerard, 2002. "AN ATTEMPT TO ESTIMATE THE SIZE OF INFORMAL ECONOMY BASED ON HOUSEHOLD BEHAVIOUR MODELING (l)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 17-24, March.
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    Citations

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    Cited by:

    1. Adriana Anamaria Davidescu (Alexandru), 2014. "Investigating the Impact of Unemployment Rate on the Romanian Shadow Economy. A Complex Approach Based on ARDL and SVAR Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 109-127, December.
    2. Albu, Lucian-Liviu & Ghizdeanu, Ion & Iorgulescu, Raluca, 2011. "Analysing drivers of and barriers to the sustainable development: hidden economy and hidden migration," MPRA Paper 32810, University Library of Munich, Germany.
    3. Nancy Arizpe & Jesus Ramos-Martin & Mario Giampietro, 2012. "An analysis of the metabolic patterns of two rural communities affected by soy expansion in the North of Argentina," UHE Working papers 2012_06, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.

    More about this item

    Keywords

    informal income; inactive population; emigration potential; hidden migration;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D10 - Microeconomics - - Household Behavior - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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