The size of the underground economy in Germany: A correction of the record and new evidence from the Modified-Cash-Deposit-Ratio approach

Michael Pickhardt and Jordi Sardà ()

No 201036, Working Papers from Institute of Spatial and Housing Economics, Munster Universitary

Abstract: Based on the Ahumada et al. (2007, Review of Income and Wealth) critique we revise existing estimates of the size of the German underground economy. Among other things, it turns out that most of these estimates are untenable and that the tax pressure induced size of the German underground economy may be much lower than previously thought. To this extent, German policy and law makers have been misguided during the last three decades. Therefore, we introduce the Modified-Cash-Deposit-Ratio (MCDR) approach, which is not subject to the recent critique and apply it to Germany for the period 1960 to 2008.

Keywords: underground economy; shadow economy; cash-depositratio; currency demand approach; MIMIC approach (search for similar items in EconPapers)
JEL-codes: C22 O17 Q41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.wiwi.uni-muenster.de/cawm/forschen/Down ... onomy-in-germany.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wiwi.uni-muenster.de/cawm/forschen/Download/Diskbeitraege/DP_36_Pickhardt_Sarda_the-size-of-underground-economy-in-germany.pdf [301 Moved Permanently]--> https://www.wiwi.uni-muenster.de/cawm/forschen/Download/Diskbeitraege/DP_36_Pickhardt_Sarda_the-size-of-underground-economy-in-germany.pdf [301 Moved Permanently]--> https://www.wiwi.uni-muenster.de/mep/forschen/Download/Diskbeitraege/DP_36_Pickhardt_Sarda_the-size-of-underground-economy-in-germany.pdf)

Related works:
Journal Article: The size of the underground economy in Germany: a correction of the record and new evidence from the modified-cash-deposit-ratio approach (2011)
Working Paper: The size of the underground economy in Germany: A correction of the record and new evidence from the Modified-Cash-deposit-Ratio approach (2010)
Working Paper: The size of the underground economy in Germany: A correction of the record and new evidence from the Modified-Cash-Deposit-Ratio approach (2010)
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: https://EconPapers.repec.org/RePEc:muc:wpaper:201036

Access Statistics for this paper

More papers in Working Papers from Institute of Spatial and Housing Economics, Munster Universitary Contact information at EDIRC.
Bibliographic data for series maintained by Norbert Hiller ( this e-mail address is bad, please contact ).