Estimates of the black economy based on consumer demand approaches

• 成果类型: Article
• 署名作者: Lyssiotou, P; Pashardes, P; Stengos, T
• 署名单位: University of Cyprus; University of Guelph
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2004.00234.x
• 发表日期: 2004
• 页码: 622-640
• 关键词: hidden economy; UNITED-STATES; underground economy; engel curves; expenditure; regression; systems; rank; allocation; patterns

摘要

We propose a consumer demand system approach to estimating the size of the black economy where alternative hypotheses affecting the empirical results can be tested in a nested framework. This approach allows for the estimation of the under-reporting of household income from various sources, dispensing with the need to use arbitrary criteria to classify households by their main source of income. It also avoids potential bias in black economy estimates arising from mistaking preference heterogeneity (substitution) as income effects. We illustrate these arguments by estimating the extent to which self-employment income in the UK is under-reported using parametric and nonparametric techniques.