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Using Personal Car Register for Measuring Economic Inequality in Countries with a Large Share of Shadow Economy: Evidence for Latvia

  • Vyacheslav Dombrovsky
  • Konstantin A. Kholodilin
  • Boriss Siliverstovs

We suggest to use 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. The latest officially available estimate of the Gini coefficient is 0.36 for 2005, which is much lower than 0.55 for 2009 reported in our paper.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.379159.de/dp1153.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1153.

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Length: 9 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwwpp:dp1153
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  1. Konstantin A. Kholodilin & Boriss Siliverstovs, 2010. "Measuring Regional Inequality by Internet Car Price Advertisements: Evidence for Germany," Discussion Papers of DIW Berlin 1036, DIW Berlin, German Institute for Economic Research.
  2. Schneider, Friedrich & Buehn, Andreas & Montenegro, Claudio E., 2010. "Shadow economies all over the world : new estimates for 162 countries from 1999 to 2007," Policy Research Working Paper Series 5356, The World Bank.
  3. Thorbecke, Erik & Charumilind, Chutatong, 2002. "Economic Inequality and Its Socioeconomic Impact," World Development, Elsevier, vol. 30(9), pages 1477-1495, September.
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