The Use of Cash and the Size of the Shadow Economy in Sweden

Gabriela Guibourg () and Björn Segendorf ()
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Gabriela Guibourg: Monetary Policy Department, Central Bank of Sweden, Postal: Sveriges Riksbank, SE-103 37 Stockholm, Sweden
Björn Segendorf: International Secretariat, Central Bank of Sweden, Postal: Sveriges Riksbank, SE-103 37 Stockholm, Sweden

No 204, Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)

Abstract: We use an “unexplained demand for cash” approach to measure the size of the shadow economy in Sweden. The size of the shadow economy is found to have increased from 3.8 to 6.5 per cent of GDP from 1990 to 2004. This result is also supported by our finding of an increased residual between households’ recorded disposable income and their consumption, investments and changes in net financial positions. Moreover, the correlation between the demand for cash that cannot be explained by recorded transactions and this residual is strong.

Keywords: Cash use; demand for cash; shadow economy; National Accounts; Financial Accounts (search for similar items in EconPapers)
JEL-codes: E26 E41 H26 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2007-03-01
New Economics Papers: this item is included in nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:rbnkwp:0204

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