The Shadow Economy in Western Europe

Research report

April 1998


Externally reviewed

Measurement and Results for Selected Countries

Study Paper No. 5


Written by: Søren Pedersen


The authors discuss both more theoretical attempts to measure the size of the undeclared sector of the economy and calculations based on interviews with large representative samples of the population. The paper also contains a discussion of the continuing methodological developments in the area.  There is a description of the EU’s thinking on how the undeclared sector can be integrated into national accounts, and updated figures for Denmark are provided for 1996-97.