Estimating the Underground Economy using MIMIC Models

Trevor Breusch

145 citations0/0 files storedJournal of Tax Administration

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Taxation and Compliance Studies Economic and Fiscal Studies Crime, Illicit Activities, and Governance

Abstract

MIMIC models are being used to estimate the size of the underground economy or the tax gap in various countries. In this paper I examine critically both the method in general and three applications of the method by Giles and Tedds (2002), Bajada and Schneider (2005) and Dell’Anno and Schneider (2003). Connections are shown to familiar econometric models of linear regression and simultaneous equations. I also investigate the auxiliary procedures used in this literature, including differencing as a treatment for unit roots and the calibration of results using other data. The three applications demonstrate how the method is subjective and pliable in practice. I conclude that the MIMIC method is unfit for the purpose.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 145 citations exist upstream.

References

1975Estimation of a Model with Multiple Indicators and Multiple Causes of a Single Latent Variable 1972Structural Equation Methods in the Social Sciences 2000Shadow Economies Around the World 2003The Shadow Economy of Italy and other OECD Countries: What Do We Know?2003Estimating the Shadow Economy in Italy: a Structural Equation Approach

Cited by

2012The impact of banking development on the size of shadow economies 2005Shadow Economies of 145 Countries all over the World: What do we really know?2012Public debt, sovereign default risk and shadow economy 2013Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions 2015Reflections on the Meaning and Measurement of Unobserved Economies: What Do We Really Know About the 'Shadow Economy'?2011Tax Morale, Tax Evasion and the Shadow Economy 2009Informal Employment Re-loaded 2016Estimating the Size of the Shadow Economy: Methods, Problems and Open Questions

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.