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approach assumes Assumes a velocity assumptions Belgian Bodo capture cash coefficient cointegrated computed by setting countries currency demand approach currency-money ratio Degree of urbanization demand equation demand function dependent variable direct taxes discrepancy economy in Belgium effect employment error-correction term ESP XBEL estimates European Commission firms formal Gerooms gray activity gray economy Hove and Vuchelen illegal aliens income indirect inflation input labor costs labor market Lagged one period Lagged Values linear measure method mix on underground money equal Mont Non-nested OECD otherwise legal participation rates Percent of GDP percent of recorded rates to zero Real GDP recorded economy recorded GDP recorded sector reference period regression results regressors sample Self-Employment setting the tax social security contributions spurious regression Tanzi tax evasion tax level tax mix tax rates tax variables total money typically underground activity underground economy peaked velocity of money workers