Tedds, Lindsay (2007): Estimating the Income Reporting Function for the Self-Employed. Published in: Empirical Economics , Vol. 38, No. 3 (2010): pp. 669-687.
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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.
|Item Type:||MPRA Paper|
|Institution:||University of Victoria|
|Original Title:||Estimating the Income Reporting Function for the Self-Employed|
|Keywords:||Underground Economy; Income Under-reporting; Nonparametric Estimation; Engel Curve|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements
|Depositing User:||Lindsay Tedds|
|Date Deposited:||03. Jul 2012 02:12|
|Last Modified:||08. Jan 2016 06:29|
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Estimating the Income Reporting Function for the Self-Employed. (deposited 23. Jul 2007)
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