The Underground Economy of Czech Republic and Tax Evasion: The Currency Demand Approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F16%3A43909239" target="_blank" >RIV/62156489:43110/16:43909239 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1016/j.sbspro.2016.05.502" target="_blank" >http://dx.doi.org/10.1016/j.sbspro.2016.05.502</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.sbspro.2016.05.502" target="_blank" >10.1016/j.sbspro.2016.05.502</a>
Alternative languages
Result language
angličtina
Original language name
The Underground Economy of Czech Republic and Tax Evasion: The Currency Demand Approach
Original language description
This study investigates the underground economy of Czech Republic and the associated losses in tax revenue. The presence of an underground economy may not necessarily be bad for the economies in which they prevail but they could cause huge losses to government revenue and could also constitute serious violation of labour regulations. The study uses the Currency Demand Approach. It measures the size of the underground economy in two stages: a) the econometric estimation of an aggregate money demand equation b) the calculation of the value of the underground economy through the quantity theory of money. The key variables in the study include: the total currency held outside the banking system, the number of automatic teller machines, the deposit interest rate, GDP deflator, the average tax, velocity of money, nominal GDP and nominal money supply. The results from the study show that the underground economy of Czech Republic on the average is about 20.9% as at the end of 2013 and the country loses an average tax revenue of about 7.2% of GDP yearly. The data was obtained from the World Bank country indicators and the International Financial Statistics.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
BB - Applied statistics, operational research
OECD FORD branch
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Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Procedia - Social and Behavioral Sciences
ISBN
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ISSN
1877-0428
e-ISSN
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Number of pages
8
Pages from-to
294-301
Publisher name
Elsevier Science BV
Place of publication
Amsterdam
Event location
Brno
Event date
Mar 10, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000386948700035