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...

In a brief period of time after the 2001-2002 crisis, there was a dramatic fall in informal salaried employment in Argentina. Informal employment—also called “non-registered employment”—refers to employment for which no social security contribution is made. This indicator dropped by...

Having in view the three main methods for the estimation of the informal economy's size, the study focuses in the first part on data and methodological problems, trying at the same time to outline a few behavioral aspects by using only simple simulation models. Thus, based on a 288-sample and...

The Informal Economy provides employment to more than 60 per cent of the labour population in the developing world despite being a site unfettered by regulations and social norms of fairness governing pay and work conditions. In assessing the factors behind an informal agent’s decision to...

Many problems emerge since it is widely believed that high tax rates and ineffective tax collection by government are the main causes contributing to the rise of the informal economy. Already the economists have established a relationship between tax rates and tax evasion or size of the informal...

The study is focused on estimating the informal economy in Romania based on survey in households. Moreover, some specific dynamic models to simulate complicated types of household’s behaviour (regimes) relating to participation in informal economy are presented.

The purpose of this paper is handling the informal sector in Egypt and the role it can play in accelerating the development process and poverty reduction. The structure of the paper starts with an introduction, and then gives a definition of development and its objectives in order to give a...

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...

This paper uses annual data for the period 1970-2006 in order to estimate and investigate the evolution of the Mexican informal economy. In order to do so, we model the informal economy as a latent variable and try to explain it through relationships between possible cause and indicator...

This paper examines impacts of income from informal employment and informal sector employment on poverty in Vietnam to define whether the informal economy is an accelerator or a decelerator of poverty. Using data from Vietnam Household Living Standard Surveys, we find that although income from...