The assessment of the extent of hidden economy in the Slovak Republic

In the article are presented results of the first part of research devoted to the measurement of the extent of hidden economy in the Slovak Republic. In the second part is defined the meaning of hidden economy and its three basic forms: underground economy, informal economy, and illegal economy. It is based of the definition of Euro-state and the System of National Accounts in the year 1993. In the third part are explained methodological avenues used in exposing hidden economy in the formal sector. The methodological stand is based on the measurement of the amount of labor in work teams and on the estimate of added tax with the consideration of assumed work productivity. On the basis of detailed facts concerning the extent of work from two aspects of labor work: from the side of supply and demand which is not statistically included, is identified. In the fourth and the fifth part is analyzed detailed breakdown of the share of hidden economy in the Slovak Republic according to the information for the year 1993. Estimated are only certain components of hidden economy in the formal sector, such as statistically-excluded activities, non-registered activities, seasonal work, and underevaluation of published statistical information. In the conclusion are summed up the results of the estimates, yet it is emphasized that the presented results are incomplete. In the next stage of the research the author will continue to quantify other constituents of hidden economy in the Slovak Republic.