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Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions

  • Andreas Buehn
  • Friedrich Schneider

This paper presents the various methods to estimate the size of the shadow economy, their strengths and weaknesses. The purpose of the paper is twofold. Firstly, it demonstrates that no ideal method to estimate the size and development of the shadow economy exists. Because of its flexibility, the MIMIC method used to get macro-estimates of the size of the shadow economy is discussed in greater detail. Secondly, the paper focuses on the definition and causal factors of the shadow economy as well as on a comparison of the size of the shadow economy using different estimation methods.

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File URL: http://www.econ.jku.at/papers/2013/wp1320.pdf
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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2013-20.

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Length: 40 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:jku:econwp:2013_20
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Web page: http://www.econ.jku.at/

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