The USA Shadow Economy and the Unemployment Rate: Granger Causality Results
Journal Title: Journal of Applied Quantitative Methods - Year 2010, Vol 5, Issue 1
Abstract
Using the time series data for USA shadow economy (SE), we examine the relationship between the size of unreported economy estimated as percentage of official GDP and the unemployment rate (UR). Granger causality tests are conducted, with a proper allowance for the non-stationarity of the data. The results indicate a clearly evidence of such causality from the unemployment rate to shadow economy.
Authors and Affiliations
Ion DOBRE, Adriana ALEXANDRU, Octavia LEPAS
Keywords
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