Econometric Models Used in the Analysis of the Informal Economy at the Regional Level

Informatica Economica Journal, Vol. 13, No. 3/2009

10 Pages Posted: 14 Oct 2009

See all articles by Tudorel Andrei

Tudorel Andrei

Academy of Economic Studies Bucharest - Faculty of Cybernetics, Statistics and Economic Informatics, Department of Statistics and Econometrics

Bogdan Oancea

Nicolae Titulescu University of Bucharest

Stelian Stancu

Romanian Academy

Andreea Iluzia E.S. Iacob

Academy of Economic Studies Bucharest - Faculty of Cybernetics, Statistics and Economic Informatics, Department of Statistics and Econometrics

Multiple version iconThere are 2 versions of this paper

Date Written: September 9, 2009

Abstract

The disintegration of planned economies and the first elements of the market economy have resulted in a new attitude from some companies to transfer their activities to the informal economy. Assessing the probability that a company decides to conduct an economic activity can be done based on the application of the logit and probit econometric models. A series of data for different latent variables should be known for their implementation. This paper presents a number of problems related to the application of these models at the level of economic regions. Binary models are recommended because of a number of variables such as: the size of the informal economy at the level of a company, the size of unpaid taxes and duties due to their activities in the informal economy, which are not known in official statistics. These variables can be substituted to some extent by the latent variables for which data series are known.

Keywords: informal economy, econometric models, logit, probit

JEL Classification: C01, C5, R11

Suggested Citation

Andrei, Tudorel and Oancea, Bogdan and Stancu, Stelian and Iacob, Andreea Iluzia E.S., Econometric Models Used in the Analysis of the Informal Economy at the Regional Level (September 9, 2009). Informatica Economica Journal, Vol. 13, No. 3/2009, Available at SSRN: https://ssrn.com/abstract=1486511

Tudorel Andrei

Academy of Economic Studies Bucharest - Faculty of Cybernetics, Statistics and Economic Informatics, Department of Statistics and Econometrics ( email )

Calea Dorobantilor, nr. 15-17, sector 1
Bucharest, 010552
Romania
+40723162826 (Phone)

Bogdan Oancea (Contact Author)

Nicolae Titulescu University of Bucharest ( email )

Calea Vacaresti nr. 185, Sector 4
Bucharest
Romania

Stelian Stancu

Romanian Academy ( email )

125, Calea Victoriei, Sector 1
Bucharest, RO - 01007
Romania

Andreea Iluzia E.S. Iacob

Academy of Economic Studies Bucharest - Faculty of Cybernetics, Statistics and Economic Informatics, Department of Statistics and Econometrics ( email )

Calea Dorobantilor, nr. 15-17, sector 1
Bucharest, 010552
Romania
+40723990280 (Phone)

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