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[C] - Studies and measurement of the non-observed economy
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Description
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Production and dissemination of estimates on the impact of the non-observed economy in terms of value added. Non-Observed Economy (NOE) refers to economic activities that cannot be directly observed and mainly includes the underground and illegal economy. Underground economy is composed of: (1) underreporting of value added, i.e., the value added that is concealed by intentional mis-declaration of turnover and/or costs; (2) the value added generated by the employment of un-registered workers; (3) a residual component including tips, undeclared rents paid to households and the effect of the balancing between estimates of supply and demand (which includes both purely statistical phenomena and underground activities that are not captured by standard estimation methods).
The estimates for underground economy are provided separately by sector of economic activity and by type of fraudulent behavior implemented from economic operators (in particular, subdeclaration of turnover, cost overlap, use of not regular work).
Illegal economy includes both activities involving the production and sell of goods and services that are outside the rule of law, and activities involving legal goods and services but that are carried out without proper authorization. For EU countries, only drugs trafficking, prostitution services and smuggling of tobacco and alcohol have to be included within the National Accounts framework.
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Eurostat type of process classification
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National Account statistical compilation
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First production year
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2011
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