Munich Personal RePEc Archive

Estimating the Income Reporting Function for the Self-Employed

Tedds, Lindsay (2007): Estimating the Income Reporting Function for the Self-Employed.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_4212.pdf

Download (240kB) | Preview

Abstract

There is considerable interest in measuring the underground economy using microeconomic data. One such method estimates income under-reporting by households by assuming a known, parametric form of the Engel curve and making the further parametric assumption that households under-report their income by a constant fraction, independent of income. This paper proposes a nonparametric approach which avoids functional form restrictions and enables the reporting function to vary across income levels and household characteristics. I illustrate by estimating the effect of the Canadian Goods and Services Tax on income under-reporting.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.