METHODS TO QUANTIFY THE UNDERGROUND ECONOMY

Abstract

The underground economy issue has raised in time miscellaneous discussions, it representing a large interest problem that affects the nations all over the world, without exception and, thereby, the well—being of stand—alone individuals. Although also treated in some previous works of the author, this topic in herein approached from a different perspective, namely the one related to distinct methods to be used in order to capture, by quantification, this undesirable economic form. Such methods, empirically tested or just imposed, based on arguments, by the researchers having launched the same, are rendered while considering their pluses and minuses in revealing, with a reasonable accuracy, the level of the above—mentioned informal economy.

Keywords

• Underground economy
• Informal labour market
• Officially unreported incomes
• Informal economy quantification
• Quantitative methods