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Estimation of the size of Indonesia's shadow economy
This paper estimates and analyzes the size of Indonesia's shadow economy over the period 1969-2004 by the applicayion of the currency demand approach, following the Schneider model. In order to chek the robustness of the result, the household elecricity approach is also applied based on the Lacko model. However, it should be noted, that the Lacko model could not produce the figure of the shadow economy size, unless the elasticity of the growth of the shadow economy's electricity demand to GDP growth is know. Our concern is on the trend of yearly changes of Indonesia shadow economy during the estimation period resulted from both the currency demand approach and household electricity approach. Comaparison between these two estimation results shows that there is a large size and increasing trend of the shadow economy in Indonesia. I found that at leas on average the size of Indonesia shadow economy is 40% of reported GDP. Direct tax burden, indirect tax burden, complexing of the tax system, and the government sector's size are factors which infulence significantly the size of he shadow economy. other economic shocks and tax reform are also found as significant factors influencing the shadow economy's size change during several periods. .Baca di tempat
Call Number | Location | Available |
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EFI-55-2-2007 | PSB lt.dasar - Pascasarjana | 1 |
Penerbit | Lembaga Penyelidikan Ekonomi dan Masyarakat FEUI., |
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Edisi | - |
Subjek | Tax evasion Electricity consumption Shadow economy Currency Demand Approach |
ISBN/ISSN | 0126155x |
Klasifikasi | - |
Deskripsi Fisik | - |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
Lampiran Berkas | Tidak Ada Data |