Estimation of Unaccounted Income Using Transport as a Universal Input: A Methodological Note

Sacchidananda Mukherjee and R. Kavita Rao ()
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R. Kavita Rao: National Institute of Public Finance and Policy

Working Papers from National Institute of Public Finance and Policy

Abstract: There has been a lot of interest in understanding and measuring the size of unaccounted incomes in economies. There are several methods to measure size of unaccounted income (or shadow economy) - e.g., monetary approach (or currency demand approach), latent variable approach and global indicator approach. Present paper proposes an alternative method by using transport as a universal input. The method is applied to Indian data. To capture the changing structural relationship between input-output and annual volatility of demands, we tested the methodology for two successive Input-Output tables and three consecutive financial years. Since the analysis is based on assumptions, a comparative static analysis is carried out to check the sensitivity of estimates to changes in the assumptions.

Keywords: Unaccounted income; Under-reporting of GDP; Road Freight Transport; Input-Output Approach; Diesel Adulteration; India (search for similar items in EconPapers)
Pages: 24
Date: 2015-04
New Economics Papers: this item is included in nep-hme, nep-iue and nep-tre
Note: Working Paper 146, 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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