IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/9980.html
   My bibliography  Save this paper

Australia’s underground economy – redux?

Author

Listed:
  • Breusch, Trevor

Abstract

Bajada (2006) recognises that his earlier books and papers used a faulty method for measuring the underground economy in Australia. He also reports finding a new “more serious problem” in the method. All of these failures can be avoided, it is claimed, by reduced use of currency modelling and more reliance on outside estimates. Despite delivering estimates up to two-thirds less than before, the revised method involves substantial double counting. Ironically, these problems are found only in Bajada’s particular method, not in currency modelling generally.

Suggested Citation

  • Breusch, Trevor, 2006. "Australia’s underground economy – redux?," MPRA Paper 9980, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:9980
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/9980/2/MPRA_paper_9980.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schneider, Friedrich, 2005. "Shadow economies around the world: what do we really know?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 598-642, September.
    2. Christopher Bajada, 2003. "Business Cycle Properties of the Legitimate and Underground Economy in Australia," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 397-411, December.
    3. repec:bla:ecorec:v:75:y:1999:i:231:p:369-84 is not listed on IDEAS
    4. Mariá Dolores Gadea & José Mariá Serrano-Sanz, 2002. "The hidden economy in Spain - A monetary estimation, 1964-1998," Empirical Economics, Springer, vol. 27(3), pages 499-527.
    5. Friedrich Schneider & Valerie Braithwaite & Monika Reinhart, 2001. "Individual behaviour in the cash/shadow economy in Australia: Facts, empirical findings and some mysteries," Economics working papers 2001-07, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Roderick Hill & Muhammed Kabir, 2000. "Currency demand and the growth of the underground economy in Canada, 1991-1995," Applied Economics, Taylor & Francis Journals, vol. 32(2), pages 183-192.
    7. repec:bla:scandj:v:88:y:1986:i:4:p:643-68 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Owolabi, Adegboyega O. & Berdiev, Aziz N. & Saunoris, James W., 2022. "Is the shadow economy procyclical or countercyclical over the business cycle? International evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 257-270.
    2. Catalina Granda-Carvajal, 2010. "The Unofficial Economy and the Business Cycle: A Test for Theories," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 573-586.
    3. González-Fernández, Marcos & González-Velasco, Carmen, 2015. "Analysis of the shadow economy in the Spanish regions," Journal of Policy Modeling, Elsevier, vol. 37(6), pages 1049-1064.
    4. Catalina Granda-Carvajal, 2012. "Macroeconomic Implications of the Underground Sector: Challenging the Double Business Cycle Approach," Economic Analysis and Policy, Elsevier, vol. 42(2), pages 237-256, September.
    5. Konopczak, Karolina, 2022. "Zmiany luki VAT w Polsce: rola czynników koniunkturalnych i strukturalnych," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2022(1), March.
    6. Rios, Vicente, 2019. "New Evidence on the Size and Drivers of the Shadow Economy in Spain: A Model Averaging Approach," MPRA Paper 97504, University Library of Munich, Germany.
    7. Aziz N. Berdiev & Rajeev K. Goel & James W. Saunoris, 2024. "Informal employment and corruption: Differences across gender and industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2066-2086, June.
    8. Christopher Bajada & Friedrich Schneider, 2009. "Unemployment and the Shadow Economy in the oecd," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1033-1067.
    9. Aristidis Bitzenis & Vasileios Vlachos & Friedrich Schneider, 2016. "An Exploration of the Greek Shadow Economy: Can Its Transfer into the Official Economy Provide Economic Relief Amid the Crisis?," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(1), pages 165-196, January.
    10. Benno Torgler & Friedrich Schneider & Christoph A. Schaltegger, 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," CREMA Working Paper Series 2007-04, Center for Research in Economics, Management and the Arts (CREMA).
    11. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    12. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    13. Alexander Knobel & Sergey Sinelnikov-Murylev & Ilya Sokolov, 2013. "Quality of the Administration of Value-Added Tax in OECD countries and Russia," Working Papers 0050, Gaidar Institute for Economic Policy, revised 2013.
    14. Roberto Dell'Anno & Adalgiso Amendola, 2008. "Istituzioni, Diseguaglianza ed Economia Sommersa: quale relazione?," Quaderni DSEMS 24-2008, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    15. Karolina Konopczak & Aleksander Łożykowski, 2021. "Efekt fiskalny uszczelniania systemu podatkowego w Polsce: próba oszacowania w zakresie podatku CIT," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 25-55.
    16. repec:ces:ifodic:v:14:y:2017:i:4:p:19267788 is not listed on IDEAS
    17. Leder, Susanne & Mannetti, Lucia & Hölzl, Erik & Kirchler, Erich, 2010. "Regulatory fit effects on perceived fiscal exchange and tax compliance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 271-277, April.
    18. Brigitte Unger, 2013. "Can Money Laundering Decrease?," Public Finance Review, , vol. 41(5), pages 658-676, September.
    19. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    20. repec:cdl:oplwec:qt6331x6vz is not listed on IDEAS
    21. Piotr Dybka & Bartosz Olesiński & Marek Rozkrut & Andrzej Torój, 2023. "Measuring the model uncertainty of shadow economy estimates," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1069-1106, August.
    22. Kastlunger, Barbara & Lozza, Edoardo & Kirchler, Erich & Schabmann, Alfred, 2013. "Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 36-45.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:9980. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.