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Original Articles

The hidden economy and tax-evasion prosecutions in New Zealand

Pages 281-285 | Received 22 Apr 1996, Published online: 02 Nov 2006
 

Abstract

We consider non-stationary time-series data for the size of the hidden economy and for tax-related prosecutions in New Zealand. The two series are found to be cointegrated, and there is strong evidence of Granger causality from prosecutions to hidden activity. There is no significant evidence of reverse causality.

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