The Shadow Economy in Portugal: An Analysis with the Mimic Approach

Dell'Anno, Roberto

Abstract

The Shadow Economy in Portugal: An Analysis with the Mimic Approach

Roberto Dell'Anno

Università degli Studi di Salerno - Department of Economics

Journal of Applied Economics, Vol. 10, No. 2, pp. 253-277, November 2007

Abstract:
The paper estimates the Portuguese Shadow Economy (SE) from 1977 to 2004 and tests the statistical relationships between the SE and other economic variables. In order to carry out the econometric analysis, a multiple indicators multiple causes (MIMIC) model with means and intercepts is applied. The main causes of the Portuguese SE are analyzed and economic policies to reduce it are suggested. An appraisal on the reliability of estimates and an alternative benchmark strategy for the MIMIC approach are proposed.

Keywords: shadow economy, MIMIC model, Portugal

JEL Classification: O17, H10, H26, C39

Accepted Paper Series

Date posted: December 6, 2007

Suggested Citation

Dell'Anno, Roberto, The Shadow Economy in Portugal: An Analysis with the Mimic Approach. Journal of Applied Economics, Vol. 10, No. 2, pp. 253-277, November 2007. Available at SSRN: http://ssrn.com/abstract=1064301

Contact Information

Roberto Dell'Anno (Contact Author)

Università degli Studi di Salerno - Department of Economics ( email )

via Ponte Don Melillo, 1
84084 Fisciano (SA)
Italy
+45 8942 1133 (Phone)
+45 8613 6334 (Fax)