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In this paper, the extent of the shadow economy in OECD countries is investigated. The estimates of the size of the shadow economy are obtained using the panel-data techniques applied to the data on 38 OECD member states over the period 1991-2007. Our estimates tend to be somewhat lower than the...
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addition, we suggest an early warning system based on three alternative approaches: signalling approach, logit and probit … signalling approach. The prediction accuracy of the logit and probit models is high enough to make them useful in forecasting the …
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