This paper shows that an increase in corporate/labor/income tax rates may push an economy with tax evasion into an expansionary pattern, under increasing returns to scale. These effects would be reversed when the steady state is saddle-path stable. This model does not undertake a full identification. The interesting feature of our results is that fiscal policy in an economy with a significant u...

We review existing estimates of the size of the Spanish underground economy, apply the Ahumada et al. (2007, RIW) correction procedure to some of them and calculate the size of the underground economy in Spain for the period 1960 through 2009 by using the modified-cash-deposits-ratio (MCDR) approach recently developed by Pickhardt and Sardà (2011, EJLE). We then extend the MCDR approach with re...

"What do we know about the size of the underground economy in Italy beyond the "common wisdom"? Some empirically tested propositions." 1.Introduction. Section I. 2. The country as a whole. 2. 1. The monetary Tanzi method applied to Italy. 2.1.1. Results .2.2 The size of the underground economy according to two other methods: 2.2.1 the statistics of the labour market; 2.2.2 the magnitude of tax ...

The past few years have witnessed millions of credit/debit cards flowing through the underground economy and ultimately causing significant financial loss. Examining key underground economy sellers has both practical and academic significance for cybercrime forensics and criminology research. Drawing on social media analytics, we have developed the AZSecure text mining system for identifying an...

Evaluation of the Underground Economy in Quebec: A Microeconomic Approach The main purpose of this paper is to estimate the size and the growth of Quebec’s underground economy, and the corresponding loss of taxes for the government. Our approach is based on a method developed by Pissarides and Weber (1989) and extended by Lyssiotou et al. (2004). The basic hypothesis is that individuals can und...