Merike Kukk presented her paper at the European Economic Association Annual Congress
Merike Kukk, scientist at the Department of Finance and Economics (TSEBA), presented her paper at the European Economic Association Annual Congress in Göteborg (Aug 26-30, 2013).
EEA Annual Congress is the most important event for all economic scientists in Europe. There is a high-level competition to participate at this congress, only 1500 scientists will get a chance to take part. It is a great honour to present a paper at EEA congress.
Merike Kukk presented her paper „Income Underreporting by Households with Business Income. Evidence from Estonia“ (co-author Karsten Staehr). This paper estimates the extent of income underreporting by households with business income relative to households of wage earners in Estonia. The baseline result is that the reported income of households with business income above 20% of total income must be multiplied by 2.6 in order to attain the same propensity of food consumption as households of wage earners. Households with business income above 0 but below 20% also underreport income, but to a lesser extent. The estimates are higher than those found for developed countries, but consistent with other studies of the shadow economy in transition countries. The analysis also shows that the presence of business income is a better indicator of income underreporting than a reported status of self-employment.
The paper is available at Bank of Estonia website.