%0 Journal Article
%T Estimating the size of non-observed economy in Croatia using the MIMIC approach
%A Vjekoslav Klari£¿
%J Financial Theory and Practice
%D 2011
%I Institute of Public Finance
%X This paper gives a quick overview of the approaches that have been used in the research of shadow economy, starting with the definitions of the terms ¡°shadow economy¡± and ¡°non-observed economy¡±, with the accent on the ISTAT/Eurostat framework. Several methods for estimating the size of the shadow economy and the non-observed economy are then presented. The emphasis is placed on the MIMIC approach, one of the methods used to estimate the size of the nonobserved economy. After a glance at the theory behind it, the MIMIC model is then applied to the Croatian economy. Considering the described characteristics of different methods, a previous estimate of the size of the non-observed economy in Croatia is chosen to provide benchmark values for the MIMIC model. Using those, the estimates of the size of non-observed economy in Croatia during the period 1998-2009 are obtained.
%K non-observed economy
%K shadow economy
%K Croatia
%K MIMIC
%U http://www.ijf.hr/eng/FTP/2011/1/klaric.pdf