Is there any method to measure shadow economy in order to use it as an independent variable to measure tax efforts of the state? How can I use the Stochastic Frontier Approach to estimate tax effort?
These publications can help you but I suppose that you know them:
http://www.igidr.ac.in/pdf/publication/WP-2014-032.pdf
http://www.imf.org/external/pubs/ft/wp/2013/wp13244.pdf
Please refer to
http://www.colorado.edu/economics/papers/WPs-03/wp03-19/wp03-19.pdf
This one might also help:
https://ideas.repec.org/a/spr/ecogov/v12y2011i3p275-299.html
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