Use of households survey data to estimate the size of the informal economy in Romania

Albu, Lucian-Liviu and Nicolae, Mariana (2003): Use of households survey data to estimate the size of the informal economy in Romania. Published in: The Informal Economy in the EU Accession Countries. Size, Scope, Trends and Challenges to the Process of EU Enlargement (2003): pp. 199-212.

Abstract

The study is focused on estimating the informal economy in Romania based on survey in households. Moreover, some specific dynamic models to simulate complicated types of household’s behaviour (regimes) relating to participation in informal economy are presented.

• Item Type: MPRA Paper
• Language: English
• Keywords: informal economy; subsistence criterion; enterprise criterion; behavioural regimes
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation; D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E26 - Informal Economy ; Underground Economy

References

Agenor, P. and Joshua, A. (1994): Macroeconomic Adjustment with Segmented Labour Markets, NBER Working paper, No. 4769.

Ahn, N. and Rica, N. (1997): The Underground Economy in Spain: An Alternative to Unemployment, Applied Economics, 29.

Albu, L.-L. (1995): Underground Economy and Fiscal Policies Modeling, ACE-Phare Project. Université de Paris I, Centre d'Études Prospectives d'Économie Mathématique Appliquées à la Planification.

Albu, L.-L., Kim, B.-Y. and Duchene, G. (2002): An Attempt to Estimate the Size of Informal Economy Based on Household Behaviour Modeling, Romanian Journal of Economic Forecasting, 1, pp. 17-24.

Albu, L.-L. and Tarhoaca, C. (eds.) (2001): Study of Informal Economy in Romania, Bucharest: CRPE.

Albu, L.-L., Daianu, D., Pauna, B. and Pavelescu, F. (1998): Endogenous Cycles and Underground Economy in Europe, MEET-IV Conference on the East European Economies in Transition, University of Leicester – CEES, Leicester.

Allingham, M. G. and Sandmo, A. (1972): Income Tax Evasion: A Theoretical Analysis, Journal of Public Economics, 1/3-4.

Daianu, D. and Albu, L.-L. (1997): Institutions, Strain and the Underground Economy, International Conference on the Importance of the Underground Economy in Economic Transition, University of Zagreb, The Davidson Institute Working Paper Series, 98.

Duchene, G. (1999): Les revenues informelles en Roumanie. Estimation par enquête, Revue d’études comparatives Est-Ouest, 30/4.

Eilat, Y. and Zinnes, C. (2000): The Evolution of Shadow Economy in Transition Countries: Consequences for Economic Growth and Donor Assistance, CAER II Discussion Paper, Nr. 83.

Enste, D. and Schneider, F. (2000): Increasing Shadow Economies All Over the World - Fiction or Reality?, A Survey of the Global Evidence of Their Impact from 1970 to 1995, Discussion Paper 26, IZA, Bonn.

Enste, D. and Schneider, F. (2000): Shadow Economies Around the World: Size, Causes, and Consequences, IMF Working Paper, WP/00/26.

Gibson, B. and Kelley, B. (1994): A Classical Theory of the Informal Sector, The Manchester School, LXII/1.

Jung, Y. H., Snow, A., and Trandel, G. A. (1994): The Evolution and the Size of the Underground Economy, Journal of Public Economics, 54.

Kaufman, D. and Kaliberda, A. (1996): An Unofficial Analysis of Economies in Transition: An Empirical Framework and Lessons for Policy, Development Discussion Paper, 558, Harvard Institute for International Development, Harvard University.

Kim, B. Y. (1996): Soviet Household Saving Function, Research Memorandum ACE Project, No. 96/14, CEES, Leicester University.

Lemieux, T., Fortin, B. and Fréchette (1994): The Effect of Taxes on Labor Supply in the Underground Economy, The American Economic Review, 84/1.

Schneider, F. and Neck, R. (1992): The Development of the Shadow Economy under Changing Tax Systems and Structures: Some (Tentative) Empirical Results for Austria, International Seminar in Public Economics, Escorial (Madrid), June 11-12.

Tanzi, V. and Davoodi, H. R. (2000): Corruption, Growth, and Public Finance, IMF Working Paper, WP/00/182.

Thomas, J. (1992): Informal Economic Activity, London: Harvester Wheatsheaf.

Yaniv, G. (1994): Tax Evasion and the Income Tax Rate: A Theoretical Reexamination, Public Finance, 49.