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Estimates Of The Hidden Economy In Austria On The Basis Of Official Statistics

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  • Alfred Franz

Abstract

By definition, the hidden economy eludes straight observation by means of official statistics. Nevertheless, attempts to quantify these phenomena usually make reference to official materials in various respects, e.g. as regards definition, or when evaluating the relative importance or some indirect reflections of such activities. In this context, official statistics may serve as a particularly useful reference when those sections of the economy are concerned which are hardly or not at all susceptible to hidden activities. Such sections can be identified in terms of industry and in terms of occupation. In the present investigation such techniques have been used to a large extent and only official statistics have been drawn upon as a data source. Accordingly, the outcome matches closely with national accounts concepts and existing national classifications of various socio‐economic statistics. The estimates refer to the hidden (“off the records”) activities of the self‐employed as well as to similar activities of employees, the unemployed etc. (“moonlighting”). Per se criminal activities have not been included, however. As regards the self‐employed the estimates basically rely on income differentials observed between small scale entrepreneurs and their employees. As regards employees numbers employed of various preselected occupational categories and of some additional groups of non‐employed have been processed successively, matching them e.g. with comparable data on time budgets and regional frequency. The outcome largely confirms common experience or expectations as regards the fields where hidden activities assume significant relative importance whereas the overall size of the hidden economy turned out fairly small as compared with official GDP.

Suggested Citation

  • Alfred Franz, 1985. "Estimates Of The Hidden Economy In Austria On The Basis Of Official Statistics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(4), pages 325-336, December.
  • Handle: RePEc:bla:revinw:v:31:y:1985:i:4:p:325-336
    DOI: 10.1111/j.1475-4991.1985.tb00516.x
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    Cited by:

    1. Maurizio Bovi & Peter Claeys, 2008. "Treasury V Dodgers. A Tale of Fiscal Consolidation and Tax Evasion," ISAE Working Papers 93 Classification-JEL E62, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    2. Maurizio Bovi, 2007. "National accounts, fiscal rules and fiscal policy. Mind the hidden gaps," ISAE Working Papers 76, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    3. Schneider, Friedrich & Neck, Reinhard, 1992. "The development of the shadow economy under changing tax systems and structures: Some theoretical and empirical results for Austria," Discussion Papers, Series II 195, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    4. Amedeo Argentiero & Carlo Andrea Bollino, 2015. "Uncovering Unobserved Economy: A General Equilibrium Characterization," Metroeconomica, Wiley Blackwell, vol. 66(2), pages 306-338, May.
    5. Nino Kokashvili & Irakli Barbakadze & Ketevani Kapanadze, 2017. "How Participating In The Shadow Economy Affects The Growth Of Latvian Firms," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 101, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. Ivo Bicanic & Katarina Ott, 1997. "The Unofficial Economy in Croatia : Causes, Size and Consequences," Occasional paper series 03, Institute of Public Finance.
    7. Friedrich Schneider, 2000. "The Increase of the size of the shadow economy of 18 OECD countries: Some preliminary explanations," Economics working papers 2000-08, Department of Economics, Johannes Kepler University Linz, Austria.
    8. Marco Pini & Paolo Quirino, 2014. "Dai primi studi sul reddito nazionale alla stima provinciale del reddito disponibile delle famiglie," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2014(3), pages 79-113.
    9. Lackó, Mária, 1995. "Rejtett gazdaság nemzetközi összehasonlításban [Hidden economy by international comparison - A method of estimation based on the bouseholds' energy consumption]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 486-510.

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