Breusch, Trevor (2006): Australia’s underground economy – redux?
This is the latest version of this item.
Download (55Kb) | Preview
Bajada (2006) recognises that his earlier books and papers used a faulty method for measuring the underground economy in Australia. He also reports finding a new “more serious problem” in the method. All of these failures can be avoided, it is claimed, by reduced use of currency modelling and more reliance on outside estimates. Despite delivering estimates up to two-thirds less than before, the revised method involves substantial double counting. Ironically, these problems are found only in Bajada’s particular method, not in currency modelling generally.
|Item Type:||MPRA Paper|
|Institution:||Australian National University|
|Original Title:||Australia’s underground economy – redux?|
|Keywords:||underground economy; currency; taxes; economic models|
|Subjects:||E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E26 - Informal Economy; Underground Economy
|Depositing User:||Trevor Breusch|
|Date Deposited:||12. Aug 2008 10:12|
|Last Modified:||16. Feb 2013 02:14|
Australian Bureau of Statistics (2004), ‘The Underground Economy and Australia’s GDP’, National Accounts Branch Discussion Paper, March. Bajada, Christopher (1999), ‘Estimates of the Underground Economy in Australia’, Economic Record, 75, 369-84. Bajada, Christopher (2001), The Cash Economy and Tax Reform, Research Studies Series No. 36, Australian Tax Research Foundation: Sydney. Bajada, Christopher (2002), Australia’s Cash Economy: A troubling issue for policymakers, Ashgate: Aldershot. Bajada, Christopher (2003), ‘Business Cycle Properties of the Legitimate and Underground Economy in Australia’, Economic Record 79, 397-411. Bajada, Christopher (2006), ‘Australia’s Underground Economy Revisited’, manuscript, University of Technology, Sydney. Breusch, Trevor (2005), ‘Australia’s Cash Economy: Are the Estimates Credible?’ Economic Record 81, 394-403. Gadea, Maria Dolores and Serrano-Sanz, Jose Maria (2002), ‘The Hidden Economy in Spain – A Monetary Estimation 1964-1998’, Empirical Economics 27, 499-527. Hill, Roderick and Kabir, Muhammed (2000), ‘Currency Demand and the Growth of the Underground Economy in Canada, 1991-1995’, Applied Economics 32, 183-92. Schneider, Friedrich (1986), ‘Estimating the Size of the Danish Economy using the Currency Demand Approach: An Attempt’, Scandinavian Journal of Economics 88, 643-68. Schneider, Friedrich, Valerie Braithwaite, and Monika Reinhart (2001), ‘Individual Behaviour in Australia's Shadow Economy: Facts, Empirical Findings and Some Mysteries’, Centre for Tax System Integrity Working Paper No.19, Canberra: Australian National University, September. Tanzi, Vito (1982), ‘Underground Economy and Tax Evasion in the United States: Estimates and Implications’, Chapter 4 of Vito Tanzi (ed.) The Underground Economy in the United States and Abroad, Lexington Books: Lexington. Tanzi, Vito (1983), ‘The Underground Economy in the United States: Annual Estimates, 1930-80’, IMF Staff Papers 30, 283-305. Schneider, Friedrich (2005), ‘Shadow economies around the world: what do we really know’, European Journal of Political Economy 21, 598-642.
Available Versions of this Item
Australia’s underground economy – redux? (deposited 25. Jan 2007)
- Australia’s underground economy – redux? (deposited 12. Aug 2008 10:12) [Currently Displayed]