ESSAY ON THE UNRECORDED ECONOMY

摘要: In the first paper, we estimate unrecorded economy in 49 economies from 1981 to 2005. Our study is based on electricity consumption series which are filtered account for technological change and changing weight of energy-intensive industrial sector. contrast with studies MIMIC method, obtain a reduction unobserved economy. Unlike La Porta Shleifer (2008), identify measures institutional quality significantly related shadow even after controlling per-capita GDP. Thus should not be dismissed as unpleasant side effect underdevelopment. Instead it some specific aspects that may well survive when reaches higher development stages. We strong substitution effects between official unofficial sectors both long run over business cycle. This has important implications income convergence relationship volatility growth. In second investigate distinct roles played by institutions, growth policies determining The sharp distinction theoretical priors determinants technique used its measurement novel contribution paper. innovation that, exploiting time dimension our panel, able better link output relative size third can contribute long-standing controversy about "institutions" "policies" economic outcomes. paper reverse standard approach typically followed literature money demand data extrapolate dynamics economy, explore – obtained independently functions - velocity. By doing this, original twofold. First, improve understanding velocity determinants. Second, provide an indirect test reliability estimates presented thesis.