The Non-Observed Economy in Portugal: The monetary model and the MIMIC model

• Type: Article in International Scientific Journal
• Date: 2019

Authors

Óscar Afonso (Author) FEP; Cláudia Soares (Author) Other

Journal

Title: Metroeconomica

Vol. 70

Pages: 172-208

ISSN: 0026-1386

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 6 Citations

ISI Web of Science

Scopus

Econlit

Scientific classification

CORDIS: Social sciences > Economics

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00Q-2Z9

DOI: 10.1111/meca.12235

Abstract (EN): This paper offers estimations for the Portuguese path of the Non-Observed Economy (NOE), in the period 1970-2015, through two seminal approaches: monetary method and the Multiple Indicators Multiple Causes (MIMIC) model. It is observed that the tax burden and social benefits are its main causes. Then, to get a more in-depth understanding of the phenomenon, it provides a study of the Granger causality between the NOE and the official Gross Domestic Product (GDP), emphasizing the implications of the NOE on the Portuguese economy. Evidence has been found for the existence of bidirectional causality between the NOE and the GDP, suggesting that the formal economy affects the NOE, and conversely that the NOE affects the economic growth.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 37