Implausible Large Differences in the Sizes of Underground Economies in Highly Developed European Countries? A Comparison of Different Estimation Methods
27 Pages Posted: 12 Jul 2017
Date Written: June 14, 2017
In this paper, first, the MIMIC estimation method is described and criticized and due to a double counting problem a correction is suggested. Second, the measurement methods used for National Accounts Statistics – the discrepancy method and two new micro survey methods – are described and a third, a micro method, using a combination of company manager surveys and their knowledge to calibrate the size of the shadow economy in firms, is presented, too. Third, a detailed comparison of the four micro estimation methods with the MIMIC and the corrected MIMIC method are presented. One major result is that the corrected MIMIC method, especially, comes quite close to various types of lately developed micro survey methods.
Keywords: MIMIC Estimation Methods, Macro and Adjusted, Micro Survey Method Asking Company Managers, Micro Survey Method Using Households' Data, Using the Consumption-Income-Gap, Comparison of Results of Size of Shadow Economy of European Countries, Shadow Economies
JEL Classification: E260, E010, H260, H320, K420, P240, O170
Suggested Citation: Suggested Citation