Estimation of Unaccounted Income Using Transport as a Universal Input: A Methodological Note(2015)
AbstractThere has been a lot of interest in understanding and measuring the size of unaccounted incomes in economies. There are several methods to measure size of unaccounted income (or shadow economy) - e.g., monetary approach (or currency demand approach), latent variable approach and global indicator approach. Present paper proposes an alternative method by using transport as a universal input. The method is applied to Indian data. To capture the changing structural relationship between input-output and annual volatility of demands, we tested the methodology for two successive Input-Output tables and three consecutive financial years. Since the analysis is based on assumptions, a comparative static analysis is carried out to check the sensitivity of estimates to changes in the assumptions.
- Unaccounted income,
- Under-reporting of GDP,
- Road Freight Transport,
- InputOutput Approach,
- Diesel Adulteration,
Publication DateApril, 2015
Citation InformationMukherjee, Sacchidananda and R. Kavita Rao (2015), "Estimation of Unaccounted Income Using Transport as a Universal Input: A Methodological Note", NIPFP Working Paper No. 146, April 2015.