Revised estimates of the Underground Economy: Implications of US Currency held abroad

Edgar Feige

MPRA Paper from University Library of Munich, Germany

Abstract: The paper reexamines the strengths and weakness of all direct and indirect methods of estimating the amount of US currency held abroad and concludes that between 25% -45% of US currency is held abroad. This result stands in sharp contrast to the widely cited estimates presented by Porter and Judson (1996) who claim that between 55% -70% of US currency is held abroad. The new estimates of currency held abroad are used to derive a domestic currency series which is then employed in a conventional currency ratio model to estimate the size and growth of the unreported economy in the US between 1973 and 1994.

Keywords: Underground Economy; Unreported Economy; Unrecorded Economy; Currency Abroad; Shadow Economy; Tax gap; Location of US Currency (search for similar items in EconPapers)
JEL-codes: C82 E41 E51 H26 O17 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (40)

Published in The Underground Economy; Global evidence of its impact and size (1997): pp. 151-208

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13805

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