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A Comparison of Different Methods of Estimating the Size of the Shadow Economy

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  • Friedrich Schneider
  • Stefan D. Haigner

Abstract

This paper describes and criticizes the MIMIC estimation method due to a double counting problem; a correction is suggested. The measurement methods used for National Accounts Statistics are discussed – the discrepancy method and two new micro survey methods – are described and a third, a micro method, using a combination of company manager surveys and their knowledge to calibrate the size of the shadow economy in firms, is presented. A detailed comparison of the four micro estimation methods with the MIMIC and the corrected MIMIC method are offered. One major result is that the corrected MIMIC method, especially, comes quite close to various types of lately developed micro survey methods.

Suggested Citation

  • Friedrich Schneider & Stefan D. Haigner, 2019. "A Comparison of Different Methods of Estimating the Size of the Shadow Economy," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 20(3), pages 63-94, July.
    • Handle: RePEc:wej:wldecn:750
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    Cited by:

    1. Sanvi Avouyi-Dovi & Lorraine Chouteau & Lucas Devigne & Emmanuelle Politronacci, 2023. "Shadow Economy in France: What Factors Matter?," Revue d'économie politique, Dalloz, vol. 133(3), pages 453-494.

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