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Master's Professional Reports Abstract



Measuring the Underground -- Monetary Models for Measuring the Size of the Underground Economy

This report focuses on the monetary methods designed in the 1970s to measure the size of the underground economy. The author attempts to apply these models to current data in order to measure the size of the current underground economy of the United States. The degree of accuracy of the monetary models has decreased due to the rapid advancement of the financial sector. This change in the financial sector limits the applicability of the described monetary models.

The author also assesses the underground economy in Hungary, concluding that conditions resulting from economic transformation have created incentives for the emergence of a large underground sector.

--Author's foreword.