Considerations Regarding Shadow Economy and Tax Evasion

Abstract

A serious problem facing all countries of the world today is the hidden economy and tax evasion. Estimating the size of the hidden economy is a challenge for economists and not an easy task. No country can fully control illegal economic activity. There are currently several estimation methods, but the most commonly used in specialized studies is the MIMIC method. This work begins with a presentation of the latest analyzes on the estimation method of the shadow economy: MIMIC. The work further analyzes the evolution of the hidden economy in the EU member states and in our country. In the last part, we focus on the connection between the hidden economy and tax evasion and some conclusions regarding this aspect are presented.

Keywords

• shadow economy
• mimic
• tax evasion