'I believe that it will aggravate the
underground economy in our country.
This implies that level of higher education in the country inculcates the sense of morality in the general population therefore reducing the size of the
underground economy.
It is inconceivable that the government would simply accept enormous revenue losses from a larger
underground economy and from tax dodges on trading profits.
Let us use the following terms and symbols: t is financial (taxation) year; [??](t) is the income of the economic system from the production and service rendered by the business; [[??].sub.1](t) is posttax income of an economic entity; u(t) is the tax burden of the economic entity in the financial (tax) year; [xi] is equity capital load taking into account the taxes; [??] is the fuzzy value of the growth rate of the economy; [??] is the fuzzy value of the
underground economy weight; [tau] is period for tax liabilities.
Ahmed and Ahmed (1995) also employed Tanzi's methodology to estimate the growth proportions of
underground economy and tax evasion in Pakistan from 1960 to 1990.
The evaluations of the magnitude of the
underground economy assist in indicating their vulnerability and responsiveness to velocity presumptions.
A study by Rand Corporation and commissioned by the security firm Juniper Networks found a well-organised, multibillion-dollar
underground economy that has become "a playground of financially driven, highly organised and sophisticated groups." The evolution of cybercrime creates new challenges for security professionals trying to protect computer networks, says Nawaf Bitar, Juniper's general manager for security.
But for people toiling in the state's
underground economy, basic information is often unavailable.
However, this objective stands to be defeated, if the
underground economy forms a larger and persistently increasing proportion of the total economy.
Floating City: A Rogue Sociologist Lost and Found in New York's
Underground Economy, by Sudhir Venkatesh, 304 pages, Penguin Press, $27.93
Dr Murtaza Mughal said that growth rate remains dismal, borrowings, circular debt, inflation, budget deficit, interest rate, poverty and unemployment has been rising while the mass of
underground economy has been increasing.
And judging from what its authors told me recently, that's one of the key reasons why many Latin Americans refrain from doing business, or why they choose to do business in the
underground economy. Court proceedings in commercial disputes are so lengthy, complicated and costly, that they discourage business, they said.