Size and scope of the underground economy in Germany

Michael Pickhardt and Jordi Sardà ()

Applied Economics, 2006, vol. 38, issue 14, 1707-1713

Abstract: The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e. currency demand and multiple indicators, multiple causes (MIMIC). The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.

Date: 2006
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DOI: 10.1080/00036840500426868

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