Money laundering in a two-sector model: using theory for measurement
- Autores: Amedeo Argentiero, Michele Bagella, Francesco Busato
- Localización: European journal of law and economics, ISSN 0929-1261, Vol. 26, Nº 3, 2008, págs. 341-359
- Idioma: inglés
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Resumen
This paper implements a methodology that exploits firms and households optimality conditions to measure money laundering for the Italian economy. This approach, first implemented by Ingram et al. (J Monet Econ 40:435436, 1997) to the household production sector, and by Busato et al. (Using theory for measurement: an analysis of the behaviour of underground economy working paper, Aarhus University, 2006) for measuring the underground economy, allows to generate high frequency time-series for money laundering using a theoretical two-sector dynamic general equilibrium model calibrated over the sample 1981:012001:04. The analysis of the generated series suggests two main results. First, money laundering accounts for approximately 12 percent of aggregate GDP; second, money laundering is more volatile than aggregate GDP and it is negatively correlated with it.
