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Income measurement and comparisons

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  • Ignacio Mauleón
  • Jordi Sardá

Abstract

The purpose of this paper is to provide a way for better measuring a country's global income when official statistics fail to account for the existence of a thriving underground, or black economy. Another purpose of this research is to discuss adequate ways to perform international comparisons of income, and income per head, and to correct for depreciation. Besides the general interest of this problem, there are two more specific reasons behind this work. First, the allocation of development funds by international agencies (for example, the structural funds in the European monetary system) are conditioned on this measure. Second, the measurement of unemployment may be totally distorted by failing to account for the hidden economy. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • Ignacio Mauleón & Jordi Sardá, 2000. "Income measurement and comparisons," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(3), pages 475-487, August.
    • Handle: RePEc:kap:iaecre:v:6:y:2000:i:3:p:475-487:10.1007/bf02294966
    DOI: 10.1007/BF02294966
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    References listed on IDEAS

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    1. Nadiri, M Ishaq & Prucha, Ingmar R, 1996. "Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 43-56, January.
    2. Philippe Barthelemy, 1988. "The Macroeconomic Estimates Of The Hidden Economy: A Critical Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 183-208, June.
    3. Edgar L. Feige, 1979. "How Big Is the Irregular Economy?," Challenge, Taylor & Francis Journals, vol. 22(5), pages 5-13, November.
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