This paper deals with the Tanzi method for the estimation of underground economy. The approach is discussed and modified. Refinements on the variables and on the econometric technique are proposed. The “adjusted” Tanzi method is then used to estimate the shadow economy in Italy along...

This paper focuses on macroeconomic interdependencies among the euro area member countries over the period 1984-2002. The theoretical framework builds on the generalized purchasing power parity hypothesis, which is empirically tested using vector error correction models with broken deterministic...

This paper focuses on the influence of labour market reforms on the wage equation for Italy over the period 1981-2006. Using Gregory and Hansen (1996) residuals based tests for cointegration in model with regime shifts, we try to detect endogenously a possible structural break in the long run...