This paper generates high frequency data for the underground labor and the underground production using a theoretical general equilibrium model, over the sample 1970:01-1992:04 (32 years; 128 observations). We compare selected time series properties of the generated series with those of the...

In this paper we show that in a two sector dynamic general equilibrium (DGE)model where part of produced capital is used as a production input in the originating sector, while remaining part is costly transferred to the other sector the optimal policies for consumption and investment are...