Estimating an Index of Iran’s Informal Economy in 1350-1386 With Concentration on the Impact of Government’s Intervention by EMIMIC Model (The Multiple Indicators-Multiple Causes Model and Error-Correction Model)

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Khandan, Abbas | 2009

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 39668 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Masoud
Abstract:
In this research, an Index of Iran informal economy in response to the government interventions in credit, labor and product markets is stimated by EMIMIC model. To do this, first these interventions are measured using principal components analysis. In the model, the variables GDP and employment are used as indicators and taxation rates, government distortions in credit, labor and product markets, government expenditure, per capita income, unemployment and inflation as causes of the informal economy. We conclude these government interventions have affected Iran informal economy and their influence is more than indirect interventions influence such as taxation. The estimated index of Iran informal economy is rising in an asending trend from 1972 to 2008, which is aselerated recent years
Keywords:
Informal Economy ; Government Intervention ; Principal Component Analysis (PCA) ; Latent Variable ; Multiple Indicator Multiple Cause Model and Error-Correction Model (EMIMIC)

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