Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The objective of this paper is to improve estimations of the size and scope of the underground economy by introducing a new approach that combines the advantages of the two most commonly used approaches, i.e. currency demand and multiple indicators, multiple causes (MIMIC). The new approach is applied to Germany. Among other things, it is shown that the approach yields improved estimation results. Some policy perspectives are discussed in the concluding section.