Estimate of shadow economy dynamics in Russia and regions: The inflationary aspect

Abstract

The share of the shadow economy in the GDP of Russia and by region — in the GRP of the regions, was estimated in the study, based on quarterly data. The methodology included two approaches — structural modeling and using of the cash demand model. Estimation of consumer price index elasticity factors by the share of shadow economy in GDP/GRP was carried out. Comparison of empirical results of the study with obtained other authors and other methods, both by country and by region, showed their comparability.