Size and Scope of the Underground Economy in Germany

Michael Pickhardt (1) , Jordi Sardà Pons (2)

1 Economics Department
2 Department d Economia

The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e., currency demand and MIMIC. The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.

Mots clés: Social Sciences & Humanities

Michael Pickhardt, Jordi Sardà Pons. Size and Scope of the Underground Economy in Germany. Applied Economics, 2006, 38 (14), pp.1707-1713. ⟨10.1080/00036840500426868⟩. ⟨hal-00581856⟩