Indirect or Macroeconomic Methods in Measuring the Informal Economy
Additional contact information
O. Nezhyvenko: National University of Kyiv-Mohyla Academy, Ukraine
Journal of Applied Management and Investments, 2019, vol. 8, issue 4, 201-215
This paper aims to define and classify indirect methods of measuring the informal economy in broad. These are macroeconomic methods that are widely utilized to capture what is regarded as hidden from the official Gross Domestic Product. More particularly, the methods such as electricity consumption method, income-expenditure difference method, currency demand method, labour force participation rate, labour input method and structural (MIMIC) model are explained. Finally, a comparison of the five macroeconomic methods is demonstrated for the European Union countries. The paper concludes that the countries with the highest share of the informal economy are Greece, Cyprus, Romania, Bulgaria, Croatia, Italy and Latvia. The countries with the lowest informal economy are Austria, the United Kingdom, the Netherlands, Sweden and Luxembourg.
Keywords: informal economy; non-observed economy; shadow economy; indirect methods (search for similar items in EconPapers)
JEL-codes: E26 I32 J46 O17 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ods:journl:v:8:y:2019:i:4:p:201-215
Access Statistics for this article
Journal of Applied Management and Investments is currently edited by Anatoliy G. Goncharuk
More articles in Journal of Applied Management and Investments from Department of Business Administration and Corporate Security, International Humanitarian University Contact information at EDIRC.
Bibliographic data for series maintained by Anatoliy G. Goncharuk ().