Comparative analysis and adaptation of methods for assessing the non-observed economy (case of the Republic of Moldova)

Abstract

The non-observed economy is the object of research, and the purpose of the study is to calculate it for the Republic of Moldova. Many evaluation methods have been described in the scientific literature and used by researchers. Therefore, a comparative analysis of these methods is needed in order to identify their advantages and disadvantages. In this study, based on the particularities of the development of the economy of the Republic of Moldova and the availability of statistical data, the currency demand model was adapted to estimate the non-observed economy of the Republic of Moldova for 2000-2020. The results of the empirical study show that changes in taxes, interest rate, national income per capita and price index contribute to the modification of the non-observed economy, but wages do not.