ISSN 1842-4562
Member of DOAJ

The USA Shadow Economy and the Unemployment Rate: Granger Causality Results

Adriana AnaMaria ALEXANDRU
Octavia LEPAS


shadow economy, unemployment rate, Granger causality


Using the time series data for USA shadow economy (SE), we examine the relationship between the size of unreported economy estimated as percentage of official GDP and the unemployment rate (UR). Granger causality tests are conducted, with a proper allowance for the non-stationarity of the data. The results indicate a clearly evidence of such causality from the unemployment rate to shadow economy.