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L’economia non osservata fra evasione e crimine: una rivisitazione del Currency Demand Approach con una applicazione al contesto italiano

Author

Listed:
  • Guerino Ardizzi

    (Bank of Italy, Servizio Supervisione sui Mercati e sul Sistema dei Pagamenti, Rome)

  • Carmelo Petraglia

    (University of Basilicata, Department of Mathematics, Information Technology and Economics.)

  • Massimiliano Piacenza

    (University of Turin, Department of Social-Economic, Mathematical and Statistical Sciences, Italy)

  • Gilberto Turati

    (University of Turin, Department of Social-Economic, Mathematical and Statistical Sciences, Italy)

Abstract

This study contributes to the debate on estimating the size of underground economy, by proposing a reinterpretation of the Currency Demand Approach (CDA). Three main innovations are introduced. First, a direct measure of cash transactions is taken as dependent variable in the money demand equation. Second, indicators of detected tax evasion substitute difficult-to-find proxies for all the relevant determinants of noncompliance. Third, a control for cash used in criminal activities is introduced. The application of this ‘modified- CDA’ to Italian provinces reveals that the provinces in Centre- North exhibit a higher incidence on GDP of both the underground economy and illegal production.

Suggested Citation

  • Guerino Ardizzi & Carmelo Petraglia & Massimiliano Piacenza & Gilberto Turati, 2013. "L’economia non osservata fra evasione e crimine: una rivisitazione del Currency Demand Approach con una applicazione al contesto italiano," Rivista di Politica Economica, SIPI Spa, issue 1, pages 229-269, January-M.
    • Handle: RePEc:rpo:ripoec:y:2013:i:1:p.229-269
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    Citations

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    Cited by:

    1. Guerino Ardizzi & Carmelo Petraglia & Massimiliano Piacenza & Gilberto Turati, 2014. "Measuring the Underground Economy with the Currency Demand Approach: A Reinterpretation of the Methodology, With an Application to Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 747-772, December.
    2. Aurelio Bruzzo, 2013. "Stabilit? finanziaria e sviluppo economico: una compatibilit? difficile, ma non impossibile per l?Italia con misure di tipo non convenzionale," ARGOMENTI, FrancoAngeli Editore, vol. 2013(39), pages 5-46.
    3. Amedeo Argentiero & Carlo Andrea Bollino, 2015. "Uncovering Unobserved Economy: A General Equilibrium Characterization," Metroeconomica, Wiley Blackwell, vol. 66(2), pages 306-338, May.

    More about this item

    Keywords

    non-observed economy; underground production; crime; currency demand approach.;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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