The author investigates here the impact of taxes on the size of the underground economy. Starting from the reference model of Allingham and Sandmo (1972), he derives three other sub-models from which it constructs a general model. The author used this model to evaluate the limits between which...

Over the last decades a growing concern over the phenomenon of the underground economy has increased attention among officials, politicians, and economists. There are several important reasons why officials and the general public should be concerned in post-communist countries about the real...

The paper aims to model the underground economy using two different models: one based on the labor supply method and a generalized model for the allocation of time. The model based on the labor supply method is conceived as a simulating one in order to determine some reasonable thresholds of the...

The paper presents a high-frequency (monthly) forecast for six macroeconomic indicators: industrial output, inflation, unemployment rate, monetary base, households’ savings and exchange rate.