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Exhaustive Measures of GDP and the Unrecorded Economy

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Exhaustiveness of national accounts estimates is important; however, it is often thwarted by gaps in the recording of economic activity – the so-called “unrecorded economy”. This paper sets out pragmatic statistical approaches for incorporating the unrecorded economy in the national accounts. It describes sources and methods that can be used to capture the unrecorded economy and discusses specific issues that arise from the use of indirect sources and techniques. Furthermore, the paper elaborates techniques for conducting statistical inquiries to collect data on the unrecorded economy, particularly on economic activities of the household sector. JEL Classification Numbers: