Subject So far, a variety of methods to measure the shadow economy have been developed. However, most of researchers investigate shadow economy at the national level, and far fewer works address the issue at the regional level. Objectives The objective of the study is to develop a methodology for calculating the value of the shadow economy of Russian regions. Methods Econometric methods helped develop a methodology to measure the shadow economy in Russian regions based on the comparison of statistical data and tax reporting. Methodological tools involve mathematical methods for statistical data processing. Results The study solves the problem of calculating the value of the shadow economy in Russian regions. To verify the reliability of obtained results, we performed a correlation analysis of association between the size of the shadow economy in Russian regions and the indicators of socio-economic development of the regions, which relate to the level of the regional shadow economy. Conclusions and Relevance The study made it possible to calculate the value of the shadow economy in Russian regions over 2010–2013. The findings may be useful for the State socio-economic policy implementation at the regional level.
Schneider F., Buehn A., Montenegro C.E. Shadow Economies All over the World: New Estimates for 162 Countries from 1999 to 2007. World Bank, Policy Research Working Paper Series, 2010, no. 5356, pp. 1–54. URL: Link
Lubell H. The Informal Economy in the 1980s and 1990s. Development Centre of the Organization of Economic Co-operation and Development, Paris,1991, 128 p.
Smith P.M. Assessing the Size of the Underground Economy: The Statistics Canada Perspective. In: Lippert O., Walker M. (Eds). The Underground Economy: Global Evidence of Its Size and Impact. Vancouver, The Fraser Institute, 1997, pp. 11–36.
Williams C.C. Evaluating the Magnitude of the Shadow Economy: A Direct Survey Approach. Journal of Economic Studies, 2006, vol. 33, iss. 5, pp. 369–385. URL: Link. URL: Link
Feige E.L. A Re-Examination of the 'Underground Economy' in the United States: A Comment on Tanzi. IMF Staff Papers, 1986, vol. 33, no. 4, pp. 768–781. URL: Link
O'Higgins M. Assessing the Underground Economy in the United Kingdom. In: Feige E.L. (Ed.). The Underground Economies: Tax Evasion and Information Distortion. Cambridge, Cambridge University Press, 1989, pp. 175–195.
Bhattacharyya D.K. An Econometric Method of Estimating the 'Underground Economy'. United Kingdom (1960–1984): Estimates and Tests. Economic Journal, 1990, vol. 100, no. 402, pp. 703–717.
Dell'Anno R., Halicioglu F. An ARDL Model of Unrecorded and Recorded Economies in Turkey. Journal of Economic Studies, 2010, vol. 37, iss. 6, pp. 627–646. URL: Link URL: Link
Feige E.L. Currency Velocity and Cash Payments in the U.S. Economy: The Currency Enigma. MPRA Paper, 1989, no. 13807, pp. 1–40. URL: Link
Lyssiotou P., Pashardes P., Stengos T. Estimates of the Black Economy Based on Consumer Demand Approaches. The Economic Journal, 2004, vol. 114, iss. 497, pp. 622–640.
Feinstein J.S. Approaches for Estimating Noncompliance: Examples from Federal Taxation in the United States. The Economic Journal, 1999, vol. 109, iss. 456, pp. 360–369. URL: Link
Calzaroni M. The Exhaustiveness of Production Estimates: New Concepts and Methodologies. Proceedings of the International Conference on Establishment Surveys, Buffalo, USA, 2000, pp. 1–10. URL: Link
Nastav B., Bojnec S. The Shadow Economy in Bosnia and Herzegovina, Croatia, and Slovenia: The Labor Approach. Eastern European Economics, 2007, vol. 45, iss. 1, pp. 29–58. URL: Link
Davidescu A.A. Estimating the Size of Romanian Shadow Economy. A Labor Approach. Journal of Social and Economic Statistics, 2014, vol. 3, no. 1, pp. 25–37. URL: Link
Quintano C., Mazzocchi P. The Shadow Economy beyond European Public Governance. Economic Systems, 2013, vol. 37, no. 4, pp. 650–670. URL: Link
Schneider F., Savasan F. DYMIMIC Estimates of the Size of Shadow Economies of Turkey and of Her Neighboring Countries. International Research Journal of Finance and Economics, 2007, iss. 9, pp. 126–143.
Orsi R., Raggi D., Turino F. Size, Trend, and Policy Implications of the Underground Economy. Review of Economic Dynamics, 2014, vol. 17, iss. 3, pp. 417–436. URL: Link
Gomis-Porqueras P., Peralta-Alva A., Waller C.J. Quantifying the Shadow Economy: Measurement with Theory. Federal Reserve Bank of St. Louis, Working Paper Series, 2011, no. 2011-015A, pp. 1–32. URL: Link
Draeseke R., Giles D.E.A. A Fuzzy Logic Approach to Modelling the New Zealand Underground Economy. Mathematics and Computers in Simulation, 2002, vol. 59, iss. 1-3, pp. 115–123. URL: Link
Ene C.-M., Hurduc N. A Fuzzy Model to Estimate Romanian Underground Economy. Internal Auditing and Risk Management, 2010, vol. 2, iss. 18. URL: Link
Maršić K., Oreški D. Modelling the Size of Underground Economy in Croatia: Fuzzy Logic Approach. Central European Conference on Information and Intelligent Systems, Varaždin, Croatia, 2014, pp. 70–77. URL: Link
Tatarkin A.I. Tenevaya ekonomika regiona: diagnostika i mery neitralizatsii [Shadow economy of the region: diagnostics and action to neutralize]. Bezopasnost' Evrazii = Security of Eurasia, 2004, no. 2, pp. 217–231.
Hernando de Soto. Inoi put': Ekonomicheskii otvet terrorizmu [The Other Path: The Economic Answer to Terrorism]. Chelyabinsk, Sotsium Publ., 2007, 408 p.