The monetary method to measure the shadow economy: The forgotten problem of the initial conditions

Hildegart Ahumada (), Facundo Alvaredo () and Alfredo Canavese

Economics Letters, 2008, vol. 101, issue 2, 97-99

Abstract: We show that when the money demand function used to estimate the size of the shadow economy includes the lagged dependent variable, the need to assume a known initial condition reappears as it was the case in the early monetary methods.

Keywords: Underground; economy; Informality; Monetary; method (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Related works:
Working Paper: The monetary method to measure the shadow economy: The forgotten problem of the initial conditions (2008)
Working Paper: The monetary method to measure the shadow economy: The forgotten problem of the initial conditions (2008)
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