The monetary method to measure the shadow economy: The forgotten problem of the initial conditions

We show that when the money demand function used to estimate the size of the shadow economy includes the lagged dependent variable, the need to assume a known initial condition reappears as it was the case in the early monetary methods.

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Year of publication:	2008
Authors:	Ahumada, Hildegart ; Alvaredo, Facundo ; Canavese, Alfredo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 101.2008, 2, p. 97-99
Publisher:	Elsevier
Subject:	Underground economy Informality Monetary method

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005307626