What Do We Know About the Black Economy?

Abstract

Much interest has recently been expressed in the scope and growth of the black economy, and several estimates of its size have been presented, which invariably receive wide coverage in the press and elsewhere. Almost without exception, this discussion seeks to convey the impression that the black economy is large and growing, and that it raises major issues for tax policy and economic management. The purpose of this article is to inject a note of scepticism into the arguement.