The Hidden Economy and the Tax-Gap in New Zealand: A Latent Variable Analysis
This paper develops a structural, latent variable, model for the hidden economy in New Zealand, and a separate currency-demand model. The latent variable model is used to generate an historical time-series index of hidden economic activity, which is calibrated via the information from the currency-demand model. The hidden economy varies between 6.8% and 11.3% of measured GDP. This, in turn, implies that the tax-gap is of the order of 6.4% to 10.2% of total tax liability in that country.
|Date of creation:||03 Jun 1998|
|Note:||ISSN 1485-6441. This paper was also released as UVic Discussion Paper 97-08 in April 1997, and a longer preliminary version was released as N.Z. Inland Revenue Department Working Paper 5a, November/December 1996. The final version of this paper is now available as vicewp:9905.|
|Contact details of provider:|| Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2|
Web page: http://web.uvic.ca/econ
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:vic:vicewp:9807. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Giles)
If references are entirely missing, you can add them using this form.