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

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

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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: 2008-11
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Citations: View citations in EconPapers (32)

Published in Economics Letters, 2008, 101 (2), pp.97-99. ⟨10.1016/j.econlet.2008.06.001⟩

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Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-00812857

DOI: 10.1016/j.econlet.2008.06.001

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