Autori
Chiarini, Bruno
Marzano, Elisabetta

Titolo
Market consumpition and hidden consumption. A test for substitutability
Periodico
Università degli Studi di Roma "La Sapienza" - Dipartimento di Economia Pubblica. Working Paper
Anno: 2005 - Volume: 6 - Fascicolo: 79 - Pagina iniziale: 1 - Pagina finale: 30

In this paper we perform an empirical analysis on the relationship between private consumption and underground economy for the Italian case. We find that private market consumption and underground (or hidden) consumption may be defined as "complementary goods": an increase in underground consumption tends to rise family market consumption and increase its marginal utility. An implication of this result is that the nonmarket sector does not offer hedging opportunities to the consumer-worker as stressed in Busato and Chiarini (2004) artificial economy. Moreover, wealth effects associated with a change in underground consumption are negative. A statistical model confirms this structural interpretation.



SICI: 1974-2940(2005)6:79<1:MCAHCA>2.0.ZU;2-L
Testo completo: http://dep.eco.uniroma1.it/docs/working_papers/Wp79.pdf

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