The paper investigated the causal relationship between IRAN underground economy and unemployment rate with Toda-Yamamoto approach for annual data during the period 1973-2012. The size of the underground economy measured as official GDP is estimated using a Multiple indicator- Multiple Causes (MIMIC) approach. The size of the underground economy has been associated with increased over the four decades, However has fluctuations in the first two decades but shows quite ascending trend in the last two decades. The empirical results point out that there is strong evidence of uni-directional causality running from unemployment rate to underground economy.
Published in | International Journal of Economic Behavior and Organization (Volume 3, Issue 2) |
DOI | 10.11648/j.ijebo.20150302.12 |
Page(s) | 23-28 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Underground Economy, Unemployment Rate, MIMIC Model, Toda-Yamamoto Approach
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APA Style
Khossrow Piraee, Hossinali Rajaee. (2015). The Causal Relationship Between Unemployment Rate and Underground Economy in Iran. International Journal of Economic Behavior and Organization, 3(2), 23-28. https://doi.org/10.11648/j.ijebo.20150302.12
ACS Style
Khossrow Piraee; Hossinali Rajaee. The Causal Relationship Between Unemployment Rate and Underground Economy in Iran. Int. J. Econ. Behav. Organ. 2015, 3(2), 23-28. doi: 10.11648/j.ijebo.20150302.12
AMA Style
Khossrow Piraee, Hossinali Rajaee. The Causal Relationship Between Unemployment Rate and Underground Economy in Iran. Int J Econ Behav Organ. 2015;3(2):23-28. doi: 10.11648/j.ijebo.20150302.12
@article{10.11648/j.ijebo.20150302.12, author = {Khossrow Piraee and Hossinali Rajaee}, title = {The Causal Relationship Between Unemployment Rate and Underground Economy in Iran}, journal = {International Journal of Economic Behavior and Organization}, volume = {3}, number = {2}, pages = {23-28}, doi = {10.11648/j.ijebo.20150302.12}, url = {https://doi.org/10.11648/j.ijebo.20150302.12}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20150302.12}, abstract = {The paper investigated the causal relationship between IRAN underground economy and unemployment rate with Toda-Yamamoto approach for annual data during the period 1973-2012. The size of the underground economy measured as official GDP is estimated using a Multiple indicator- Multiple Causes (MIMIC) approach. The size of the underground economy has been associated with increased over the four decades, However has fluctuations in the first two decades but shows quite ascending trend in the last two decades. The empirical results point out that there is strong evidence of uni-directional causality running from unemployment rate to underground economy.}, year = {2015} }
TY - JOUR T1 - The Causal Relationship Between Unemployment Rate and Underground Economy in Iran AU - Khossrow Piraee AU - Hossinali Rajaee Y1 - 2015/04/24 PY - 2015 N1 - https://doi.org/10.11648/j.ijebo.20150302.12 DO - 10.11648/j.ijebo.20150302.12 T2 - International Journal of Economic Behavior and Organization JF - International Journal of Economic Behavior and Organization JO - International Journal of Economic Behavior and Organization SP - 23 EP - 28 PB - Science Publishing Group SN - 2328-7616 UR - https://doi.org/10.11648/j.ijebo.20150302.12 AB - The paper investigated the causal relationship between IRAN underground economy and unemployment rate with Toda-Yamamoto approach for annual data during the period 1973-2012. The size of the underground economy measured as official GDP is estimated using a Multiple indicator- Multiple Causes (MIMIC) approach. The size of the underground economy has been associated with increased over the four decades, However has fluctuations in the first two decades but shows quite ascending trend in the last two decades. The empirical results point out that there is strong evidence of uni-directional causality running from unemployment rate to underground economy. VL - 3 IS - 2 ER -