The purpose of this paper is to present an extended version of the IS/LM model, with illegal economy and money laundering in a closed economy, which allows an macroeconomic analysis of the effects of this presence on short-term equilibrium. Without disregarding the FATF´s money laundering...

The rapid growth of substitutes for cash, particularly debit and credit cards, has led economists to predict the advent of the “cashless society”. Yet cash holdings in most developed economies continue to grow and in the U.S., per capita currency holdings now amount to $3000. This paper...

The Islamic Republic of Iran as one of the widest countries of Middle East and economic poles of southeast of Asia is neighbor of 7 foreign countries in grand. An important negative result of this fact is smuggling in border cities of Iran that is named undergrand or informal economy. In the...

The purpose of this research is to study the presence of illegal economy and money laundering processes from a macroeconomic perspective to analyze their economic effects and propose a conceptual framework that identifies its impact in terms of the mechanisms identified. Thus, considering the...

The main purpose of this paper is to evaluate the effects of economic policies on informal sector performances and poverty in Cameroon. It is based on a computable general equilibrium. The model has 5 production sectors including 2 commercial sectors, 2 tradable sectors and 1 non tradable...

Abstract This study empirically investigates the extent of noncompliance with the tax code and examines the determinants of federal income tax evasion in the U.S. Employing a refined version of Feige’s (1986; 1989) General Currency Ratio (GCR) model to estimate a time series of unreported income...

New Estimates of U.S. Currency Abroad, the Domestic Money Supply and the Unreported Economy Edgar L. Feige * Abstract Despite financial innovations that have created important new substitutes for cash usage, per capita holdings of U.S. currency amount to $2950. Yet American households and...

In Romania the government tried to stimulate the employment trough active measures since 2002. Therefore, there are two types of measures: one that attempts to increase the chances of employment of the persons that are looking to work. These measures include the following: job-matching services,...

This paper develops a demographic model of the currency population by examining the birth and death rates of specific denominations of currency. This framework permits empirical estimation of the average lifetime of notes in circulation and hence the currency velocity (turnovers per year) of...

This paper gives a wide introduction in the problematic of the informal sector / informal economy and analyzes its causes and effects in Argentina. The analysis of the development of the informal sector starts in the 1980s. The focus lies in the 1990s and the beginning of the 2000s where the...