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How can the size of shadow economy estimated?
The size of the shadow economy is estimated when activity is undeclared as the amount of informal activity can be calculated:
a. Measuring electricity usage and
b. Demand for notes and coins.
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Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4) for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).
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