• Hristijan Risteski Center for Economic Analyses (CEA)
Keywords: shadow economy, household expenditure, handicraft economy


In every economy more or less are present shadow economy activates. With every change of the legislation for reducing it, shadow economy activities are changing and adapting as well. In this paper we give overview and definitions of the shadow economy, reasons for and effects from it. I employ field research to measure the size of shadow economy in different sectors in the handicraft economy in Macedonia. Also we include calculations from the State Statistical Office for underground (underreporting) and informal sector (not registered) economy from 2000 till 2007.


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