Spatial Distribution of the Informal Economy. A Theoretical and Empirical Investigation
Journal title SCIENZE REGIONALI
Author/s Lucian Liviu Albu, Ion Ghizdeanu, Cristian Stanica
Publishing Year 2011 Issue 2011/1
Language English Pages 18 P. 63-80 File size 680 KB
DOI 10.3280/SCRE2011-001003
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Drawing on the existing theory, in this paper we analytically evaluate the limitvalues of certain important parameters involved in models used to estimate the size of the informal economy and to explain its workings. We develop a model which combines the level of income and the tax rate as the main determinants of the informal economy. On the basis of this model, we perform simulations using the available data. The second goal of the study is to extend investigation to regional level and, finally, to obtain a map reflecting the spatial distribution of the informal economy in Romania.
Keywords: Informal economy, spatial distribution, probability of detection
Jel codes: C16, H26, R12
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Lucian Liviu Albu, Ion Ghizdeanu, Cristian Stanica, Spatial Distribution of the Informal Economy. A Theoretical and Empirical Investigation in "SCIENZE REGIONALI " 1/2011, pp 63-80, DOI: 10.3280/SCRE2011-001003