Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/97457
Authors: 
Schneider, Friedrich
Hametner, Bettina
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 1319
Abstract: 
Using the currency demand approach, size and development of Colombia's shadow economy are estimated over the period from 1980 to 2012. The results show a great extent of shadow economic activity varying over time between 27 and 56 % of GDP. The most important factors driving the shadow economy are indirect taxation and unemployment. Analyzing the interaction between shadow and official economy, the shadow economy has a negative effect on the official one. Average growth of real per capita GDP is 1.86% between 1980 and 2012, without shadow economy it would have been higher around 0.12 percentage points on average.
Subjects: 
Colombian shadow economy
currency demand method
taxation
unemployment
interaction between the shadow and official economy
JEL: 
O17
O5
D78
H2
H11
H26
Document Type: 
Working Paper

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