Tedds, Lindsay (2007): Estimating the Income Reporting Function for the Self-Employed.
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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.
Item Type: | MPRA Paper |
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Institution: | University of Victoria |
Original Title: | Estimating the Income Reporting Function for the Self-Employed |
Language: | English |
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 |
Item ID: | 4212 |
Depositing User: | Lindsay Tedds |
Date Deposited: | 23 Jul 2007 |
Last Modified: | 01 Oct 2019 12:49 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/4212 |
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