Neural Network Estimation of Shadow Economy Size — Improving on MIMIC Models

Key Points

• The aim is to enhance the estimation accuracy of the shadow economy size using neural network techniques compared to MIMIC models.
• Developed a neural network model for estimating shadow economy size.
• Compared the performance of the neural network to traditional MIMIC models.
• Used relevant economic indicators for analysis.
• The neural network provided a more accurate estimation compared to MIMIC models.
• Improvements were observed in the predictive capability of shadow economy size.
• Findings support the effectiveness of neural networks in economic modeling.