Size and scope of the underground economy in Germany

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Abstract:

The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e. currency demand and multiple indicators, multiple causes (MIMIC). The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500426868

Affiliations: 1: Chemnitz University of Technology, Chemnitz, Germany 2: Universitat Rovira i Virgili, Reus, Spain

Publication date: August 10, 2006

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