We contribute to the debate on how to assess the size of the underground or shadow economy with a reinterpretation of the traditional Currency Demand Approach (CDA) � la Tanzi. We introduce three main innovations. First, we take as dependent variable in the money demand equation a direct...

This study contributes to the debate on estimating the size of underground economy, by proposing a reinterpretation of the Currency Demand Approach (CDA). Three main innovations are introduced. First, a direct measure of cash transactions is taken as dependent variable in the money demand...

This study contributes to the debate on estimating the size of underground economy, by proposing a reinterpretation of the Currency Demand Approach (CDA). Three main innovations are introduced. First, a direct measure of cash transactions is taken as dependent variable in the money demand...