Empirical evidence on the existence of the Philippine underground economy using the Ramsey reset procedure

• Main Authors: David, Ma. Francesca Angela M., Paolo, Beltran
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Informal sector (Economics) > Philippines; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/4967
• Institution: De La Salle University

The emergence of informal sectors introduced small-scaled employment that lacked policies and recognition of authorities in terms of activities such as tax evasion, registration permits and smuggling. The informal sector provides goods and services with low cost in resources and exclusion from laws implemented by the government. Economists used various measurements such as the currency demand and monetary methods to provide cohesive measurement in the existence of the underground economy. This thesis is intended to use an econometric method to provide indication in the existence of the underground economy in the Philippines. The thesis would translate a U.K. econometric method by Bhattacharyya into the Philippine setting. The thesis would provide evidence to the existence of the Philippine underground economy such that proper tax collection policies, data collecting and regulation functions will be improved.