scholarly journals Measuring the Underground Economy with the Currency Demand Approach: A Reinterpretation of the Methodology, With an Application to Italy

2013 ◽  
pp. n/a-n/a ◽  
Author(s):  
Guerino Ardizzi ◽  
Carmelo Petraglia ◽  
Massimiliano Piacenza ◽  
Gilberto Turati
Keyword(s):  
Underground Economy ◽  
Currency Demand ◽  
Currency Demand Approach

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.

scholarly journals Measurement of the Underground Economy in Nepal: A Currency Demand Approach

2016 ◽  
pp. 105-127 ◽  
Author(s):  
Nirmal Kumar Raut ◽  
Namuna Chalise ◽  
Puja Thapa
Keyword(s):  
Armed Conflict ◽  
Indirect Method ◽  
Developing Economies ◽  
Underground Economy ◽  
Institutional Arrangements ◽  
Financial Crimes ◽  
Currency Demand ◽  
Currency Demand Approach

There have been rising concerns on growing magnitude of Underground Economy in most of the economies irrespective of their state of development. The problem is more apparent in developing economies where legal and institutional arrangements are relatively weaker. This study attempts to estimate empirically the size of Underground Economy in Nepal. We use an indirect method of customized version of Currency Demand Method to measure the same and find that its coverage has been increasing throughout in the last two decades with the most alarming increment in the last two fiscal years 2011and 2012. We attribute these increments particularly to the 1996-2006 armed conflict; the increasing cases of economic and financial crimes; and a large informal sector.Economic Journal of Development Issues Vol. 17 & 18 No. 1-2 (2014) Combined Issue, Page: 105-127

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.

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