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assumed attempt to measure average tax rate billions of u.s. brinqs C/M2 ratio Cagan calculated California State University capita income cash ceteris paribus chanqes circulation column comoosition of income cost of holdinq critical F currency holdings currency holdinqs currency ratio currency to M2 currency-denomination demand deoosits dependent variable derived ECONOMY AND TAX exoected factors Fiege's holdinq currency illegal money illeqal income tax evasion increase indicatinq Internal Revenue Service irregular economy larqer legal economy legal money leqal level of currency Ln M2 measure the underground national accounts nominal GNP obtain oersonal income oresumably percent period predicted values rate on interest ratio of currency regression relative cost reported GNP reqression equations restrictions share of waqes siqn statistics tax authorities tax revenue tax variables taxpayers total underqround trillion u.s. dollars UGNP underground activity underground economic activities underground economy underground GNP value of currency velocity of money waqes and salaries weighted average tax