Economics at your fingertips  

Non-Observed Economy vs. the Shadow Economy in the EU: The Accuracy of Measurements Methods and Estimates revisited

Philippe Adair

Post-Print from HAL

Abstract: The Non-Observed Economy (NOE) vs. the shadow economy remains a controversial issue. Illegal, underground and informal activities encapsulated within the NOE/shadow economy display large discrepancies throughout the European Union. First, a tractable taxonomy of the aforementioned market activities is designed according to both definition and scope, whereupon a wide spectrum of estimation methods applies. Second, direct measurements provided by tax audits, household informal expenditure and labour market surveys provide piecemeal information regarding such unobserved activities; a cross-section survey issued from a unique questionnaire applied to all European countries in 2007 and again in 2013 deserves special attention. Third, indirect macroeconomic measurements are drawn from discrepancies on the market for goods and services on the money market and on the labour market, whereas the DYMIMIC (dynamic multiple indicators-multiple causes) method carves the trends of the shadow economy (hereafter SE). Fourth, the estimates of the EU shadow economy drawn from the DYMIMIC model are compared with the assessment of the NOE according to national accounts adjustments; the relevance of major determinants of the NOE/shadow economy-tax burden as well as the characteristics of the informal workforce, is discussed.

Keywords: Shadow Economy; Estimates; European Union; Measurement Methods; National Accounts (search for similar items in EconPapers)
Date: 2017-11-25
New Economics Papers: this item is included in nep-eec and nep-iue
Note: View the original document on HAL open archive server:
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in 4 th OBEGEF Interdisciplinary Insights on Fraud and Corruption , Nov 2017, Porto, Portugal

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2020-07-01
Handle: RePEc:hal:journl:hal-01683929