scholarly journals Using currency demand to estimate the Palestine underground economy: An econometric analysis

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Ibrahim M. Awad ◽  
Wael Alazzeh
Keyword(s):  
Underground Economy ◽  
Econometric Analysis ◽  
Currency Demand

Currency demand and the growth of the underground economy in Canada, 1991-1995

2000 ◽  
Vol 32 (2) ◽  
pp. 183-192 ◽  
Author(s):  
Roderick Hill ◽  
Muhammed Kabir
Keyword(s):  
Underground Economy ◽  
Currency Demand

ANALISIS UNDERGROUND ECONOMY INDONESIA DAN POTENSI PENERIMAAN PAJAK DI ERA TAX AMNESTY

INFO ARTHA ◽  
2017 ◽  
Vol 1 (1) ◽  
pp. 60-78
Author(s):  
Andi Wawan Mulyawan
Keyword(s):  
Time Series ◽  
Underground Economy ◽  
Least Square ◽  
Demand Model ◽  
Quarterly Data ◽  
Ordinary Least Square ◽  
Tax Amnesty ◽  
Currency Demand ◽  
Tax Loss ◽  
Data Period

The growth of underground economy activity believed has potential tax loss. This study aims to estimate the size of underground economy activities in Indonesia. Based on the results of these estimates, further calculated the potential tax loss due to the existence of underground economy activities. This study was conducted using quantitative approaches, namely currency demand model by Vito Tanzi (1980) and Faal (2003) which is estimated by ordinary least square (OLS) method. By using time series (quarterly) data period 2011-2015 this study found that the size o f underground economy is about Rp 536 trillion per year on average, equivalent to 22,1% of GDP. Meanwhile, the potential tax loss due to the activity estimated at Rp 487,12 trillion on average per year, or approximately 1,9% of GDP.                      Berkembangnya kegiatan underground economy diyakini berpotensi menyebabkan hilangnya penerimaan negara melalui sektor perpajakan. Penelitian ini dilakukan dengan tujuan untuk menganalisis dan mengetahui besarnya nilai kegiatan underground economy regional di Indonesia pada periode 2011 s.d. 2015 dan besarnya potensi pajak yang hilang akibat adanya kegiatan underground economy tersebut. Dengan menggunakan data sekunder berbentuk runtut waktu (time series) triwulanan dari rilis publikasi Bank Indonesia (BI), Badan Pusat Statistik (BPS) dan Direktorat Jenderal Pajak Kementerian Keuangan dan metode analisis kuantitatif yang diestimasi dengan metode Ordinary Least Square (OLS) serta perhitungan estimasi underground economy menggunakan pendekatan moneter yang dikonstruksi oleh Vito Tanzi (1980) dan Faal (2003), penelitian ini secara empiris mengestimasi nilai underground economy. berkisar antara Rp 289 triliun sampai Rp 958 triliun dengan nilai rata-rata mencapai Rp 536 triliun per tahun atau setara dengan 22,1% terhadap PDB Nominal. Sementara itu, akibat adanya kegiatan underground economy, potensi pajak yang hilang berkisar antara Rp 23,32 triliun hingga Rp 1.467 triliun dengan rata-rata per tahun mencapai Rp 487,12 triliun atau setara dengan 1,9% dari PDB.

scholarly journals A re-examination of the U.S. underground economy: size, estimation, and policy implications

2009 ◽  
Vol 7 (2) ◽  
pp. 279-295
Author(s):  
Jung-Suk Yu ◽  
M. Kabir Hassan
Keyword(s):  
Income Tax ◽  
Dynamic Error ◽  
Underground Economy ◽  
Policy Implications ◽  
Tax Rates ◽  
Size Estimation ◽  
Misspecified Models ◽  
Currency Demand ◽  
Statistical Issues ◽  
The U.S

We re-examine the size of the underground economy in the U.S. between 1972 and 2006 after properly adjusting for several statistical issues relating to its estimation. The dynamic error-correction-based currency demand approach confirms that income tax rates have no contemporaneous effect on currency demand, but they have positive and significant effects with a one-period lag. In addition, we observe that the size of the underground economy in the U.S. has grown considerably during the post-1990 period from $148.7 billion (3.4% of official GDP) in 1973 to $691.2 billion (6.0% of official GDP) in 2006. We also find that misspecified models have a propensity for overstating the size of the underground economy. During recessionary periods, the underground and official economies move in a same direction, although the growth rates of the underground economy are more unpredictable than those of the official economy.

scholarly journals An Empirical Estimation of the Underground Economy in Ghana

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Edward Asiedu ◽  
Thanasis Stengos
Keyword(s):  
Lower Bound ◽  
Underground Economy ◽  
Parameter Estimates ◽  
Empirical Estimation ◽  
Demand Equation ◽  
Long Run ◽  
Currency Demand ◽  
Currency Demand Approach ◽  
Average Size

The main aim of this paper is to estimate the size of the underground economy in Ghana during the period 1983–2003. There is no agreement on the appropriate estimation approach to adopt to measure the size of the underground activities. To this end, we employ the well-applied currency demand approach in our measurement. Parameter estimates from the estimated currency demand equation are used in quantifying the ratio of “underground” to “measured” output/income for the Ghanaian economy. The estimated long-run average size of the underground economy to GDP for Ghana over the period is 40%. The underground economy is found to vary from a high of 54% in 1985 to a low of 25% in 1999. Estimates may represent lower bound estimates.

Estimating the underground economy, illegal money and tax evasion in Qatar

2019 ◽  
Vol 26 (4) ◽  
pp. 1048-1064 ◽  
Author(s):  
Awadh Ahmed Mohammed Gamal ◽  
Jauhari Dahalan ◽  
K. Kuperan Viswanathan
Keyword(s):  
Tax Evasion ◽  
Banking Sector ◽  
Demand Function ◽  
Unit Root Test ◽  
Underground Economy ◽  
Average Level ◽  
Economic Activities ◽  
Content Type ◽  
Currency Demand ◽  
The Government

Purpose Up to now a country-specific study on Qatar with respect to underground economy, illegal money and tax evasion has not been undertaken. This paper aims to contribute by separately estimating the magnitude of the underground economy in Qatar from 1980 to 2010 using adjusted currency demand function. Design/methodology/approach The study uses the Zivot–Andrews unit root test for the stationarity analysis and applies the Gregory and Hansen long run cointegrating technique for estimating the underground economy based on the latest form of the currency demand function model. While the general to specific technique is used to estimate the short run error correction model. Findings The results show that the average size of the underground economy in Qatar is about 17.03 per cent of the official gross domestic products (GDPs). The average level of tax evasion as a per cent of the total non-oil tax revenues is estimated at around 16.50 per cent and is about 2.12 per cent of the official GDP. The average level of illegal money to the total money from banking sector is estimated at 26.70 per cent. Originality/value This study is the first to separately estimate the extent of the underground economy, illegal currency and tax evasion in Qatar. It overcomes the methodological errors and spurious estimation problems encountered in the previous studies that included Qatar with other countries based on cross-country data without taking into consideration the economic differences between countries. The authors believe that the findings may help the government of Qatar to re-formulate its economic policies, thus, enabling it to curb the growing underground economic activities.

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