The hidden economy in Spain - A monetary estimation, 1964-1998

María Gadea () and José Mariá Serrano-Sanz ()
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José Mariá Serrano-Sanz: Departamento de Economi´a Aplicada, Facultad de Económicas, Gran Via, 4, 50005 ZARAGOZA, SPAIN
Authors registered in the RePEc Author Service: José M. Serrano Sanz ()

Empirical Economics, 2002, vol. 27, issue 3, 499-527

Abstract: The aim of this paper is to estimate the level and evolution of hidden income in Spain during the period 1964-1997. To this end, we employ the well-known monetary approach which supposes that the hidden economy is a response on the part of the economic agents to the tax burden, one which manifests itself in an excess of demand for currency. The estimation has been made on the basis of the ADL technique, an ECM and Johansen's cointegration approach. The period chosen was characterised by multiple institutional changes, an increase in the tax burden and wide-ranging financial liberalisation. This has obliged us to formulate a specific monetary model to estimate the hidden economy and is one of the original features of that model.

Keywords: hidden; economy; ·; monetary; approach (search for similar items in EconPapers)
JEL-codes: C22 E41 E62 (search for similar items in EconPapers)
Date: 2002-04-26
Note: received: February 1999/Final version received: March 2001
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Citations: View citations in EconPapers (7)

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