The Underground Economy in the United States: A Comment on Tanzi

Thomas, Jim

doi:10.2307/3867217

Cited by 53 publications

(39 citation statements)

References 5 publications

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“…This however, might be as a result of the rural dwellers in Nigeria who have limited access to banking service and still resorted to barter system of transaction in most of their services. This supports the claim by Thomas (1986Thomas ( , 1999 and Feige (1986) who argue that cash in circulation only give a rough indication of informality because it is not all informal transactions that are performed in cash. Lastly, in line with the study of Fasanya and Onakoya (2012), who found that human capital positively affect unemployment in Nigeria, this study also supported the evidence that human capital had a positive effect on unemployment in the long-run in Nigeria where a 1% increase in human capital in Nigeria caused increased unemployment of 0.29%.…”

Section: Discussion Of Results Conclusion and Recommendationssupporting

confidence: 76%

Informal Sectors and Unemployment in Nigeria: A Vector Error Correction Model (VECM) Approach

John¹,

Olofin²

2017

IOSR JEF

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Section: Discussion Of Results Conclusion and Recommendationssupporting

confidence: 76%

Informal Sectors and Unemployment in Nigeria: A Vector Error Correction Model (VECM) Approach

John¹,

Olofin²

2017

IOSR JEF

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“…All conventional possible factors, such as the development of income, payment habits, interest rates, and so on, are controlled for. Additionally, such variables as the direct and indirect tax burden, government regulation and the complexity of the tax system, which are assumed to be the major factors causing people to work in the shadow economy, are 39) For a detailed criticism of the transaction approach see Boeschoten and Fase (1984), Frey and Pommerehne (1984), Kirchgaessner (1984), Tanzi (1982aTanzi ( ,b, 1986, Dallago (1990), Thomas (1986Thomas ( , 1992Thomas ( , 1999 and Giles (1999a). The currency demand approach is one of the most commonly used approaches.…”

Section: The Currency Demand Approachmentioning

confidence: 99%

“…Instead, Tanzi should have considered (and controlled for) the presence of US dollars, which are used as an international currency and held in cash abroad. 44) Moreover, Frey and Pommerehne (1984) and Thomas (1986Thomas ( , 1992Thomas ( , 1999 claim that Tanzi's parameter estimates are not very stable. 45) (v) Most studies assume the same velocity of money in both types of economies.…”

Section: (I)mentioning

confidence: 99%

Shadow economies around the world: what do we really know?

Schneider

2005

European Journal of Political Economy

904

805

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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“…15 For an extended description of this approach, see Feige (1996); for a further application to the Netherlands, Boeschoten and Fase (1984), and to Germany, Langfeldt (1984). 16 For a detailed criticism of the transaction approach see Boeschoten and Fase (1984), Frey and Pommerehne (1984), Kirchgaessner (1984), Tanzi (1982aTanzi ( ,b, 1986, Dallago (1990), Thomas (1986Thomas ( , 1992Thomas ( , 1999 and Giles (1999a). demand for currency, an equation for currency demand is estimated over time. All possible conventional factors, such as the development of income, payment habits, interest rates, credit and other debt cards as a substitute for cash and so on, are controlled for.…”

Section: The Currency Demand Approachmentioning

confidence: 99%

“…dollars, which are used as an international currency and held in cash abroad.21 Frey and Pommerehne (1984) and Thomas (1986Thomas ( , 1992Thomas ( , 1999 claim that Tanzi's parameter estimates are not very stable.22 5. Most studies assume the same velocity of money in official and shadow economies.…”

mentioning

confidence: 99%

Shadow Economy: Estimation Methods, Problems, Results and Open questions

Schneider

Buehn²

2018

Open Economics

146

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This paper presents various methods used for estimating the size of the shadow economy. Each method is evaluated and its strengths and weaknesses are discussed, as well as results each method yields. The purpose of the paper is threefold: Firstly, to demonstrate that there is no single infallible method for estimating the size and development of the shadow economy and results can differ significantly between different approaches. The MIMIC approach, discussed in greater detail, is often used due to its flexibility. Secondly, the paper discusses the very definition of the shadow economy and factors contributing to its growth. Finally, latest estimations of the size of the shadow economies of 143 countries over the period 1996 to 2014 are presented. JEL-Classification: D78, E26, H2, H11, H26, K42, O5, O17Keywords: shadow economy estimates, MIMIC approach, methods to estimate the shadow economy, advantages and disadvantages of the methods, MIMIC-method, calibration procedure, light intensity approach IntroductionEmpirical research about the size and development of the shadow economy all over the world has grown rapidly. Nowadays, there are so many studies,1 which use different methods in order to estimate the size and development of the shadow economy, that it is quite difficult to judge the reliability of various methods. Hence, the goal of this paper is to critically review the various methods for estimating the size of the shadow economy and to discuss their strengths and weaknesses. This will enable an interested reader to evaluate the advantages and disadvantages of the different methods.The paper is structured as follows: In the next section some theoretical considerations are presented, starting with a definition of the shadow economy and a brief discussion of its main causes. In section 3 the various measurement methods, as well as their strengths and weaknesses, are described. This section also presents estimates of the size of the shadow economy in Germany using different estimation methods. Section 4 presents some latest developments, new measurement methods, the concept of digital shadow economy, and latest results from 143 countries between 1996 and 2014. Finally, section 5 presents a summary and some concluding remarks.1 See e.g. Feld and Schneider (2010), Gerxhani (2003), Schneider (2015), and Schneider and Williams (2013), Schneider (2016, Schneider (2016), andSauka, Schneider and Defining the shadow economyResearchers attempting to measure the size of shadow economy face the first and difficult question of how to define it.2 One commonly used working definition encompasses all currently unregistered economic activities that would contribute to the officially calculated (or observed) Gross National Product if observed.3 Smith (1994, p. 18) uses the definition "market-based production of goods and services, whether legal or illegal, that escapes detection in the official estimates of GDP." One of the broadest definitions includes "those economic activities and the income derived from them ...

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The Underground Economy in the United States: A Comment on Tanzi

Cited by 53 publications

References 5 publications

Informal Sectors and Unemployment in Nigeria: A Vector Error Correction Model (VECM) Approach

Informal Sectors and Unemployment in Nigeria: A Vector Error Correction Model (VECM) Approach

Shadow economies around the world: what do we really know?

Shadow Economy: Estimation Methods, Problems, Results and Open questions

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