Download (268kB).pdf

MPRA_paper_3760.pdf
Preview of Download (268kB)
🔗 Source: mpra.ub.uni-muenchen.de
📊 Size: 214 KB
👤 Author: Albu Lucian Liviu
⬇️ Downloads: 144

Summary

A model is proposed to estimate the informal economy at a regional level, investigating the relationship between tax rates and informal economic activities. Theoretical and empirical aspects are explored, including the impact of tax rates, probability of detection, and risk-aversion on the size and dynamics of the informal economy. Using data from Romanian surveys, the study finds that the main reason for informal economy is the general household's standard of living or actual income obtained from formal work. A simple model is built to estimate theoretical limit-values for informal economy based on macroeconomic data, and regression equations are used to extend the model to estimate the size and dynamics of informal economy at a regional level in Romania.

Description

A model is proposed to estimate the informal economy at a regional level, investigating the relationship between tax rates and informal economic activities.

Technical Information

  • File Format: PDF
  • File Size: 214 KB
  • Pages: 20
  • Language: EN
  • Author: Albu Lucian Liviu
  • Total Downloads: 144
  • Last Updated: 7 days ago

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