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Modelling the Hidden Economy and the Tax-Gap in New Zealand

  • David E. A. Giles

Abstract

Foregone tax revenue resulting from the underground economy is a major, and apparently growing, problem. We describe a modelling methodology that yields a time-series of the underground economy for New Zealand, from which a series of the “:tax-gap” can be obtained. There have been no previous attempts to obtain such measures for New Zealand previously, but this is a topical issue in view of the current political debate on taxation policy and taxation compliance in that country.

Keywords

Unit Root Shadow Economy Underground Economy Mimic Model Root Mean Square Residual 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2000

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  • David E. A. Giles

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