Estimating the underground economy by using MIMIC models: A response to T. Breusch´s critique

Breusch (2005b) critically addresses an important and challenging question: Is it reliable to use the Multiple Indicators Multiple Causes model to estimate Shadow Economy? Breusch concludes that this approach is not suitable for the purpose. Breusch’s paper highlights the different procedures and hypotheses about the estimation of the size and development of the shadow economy in three papers: Giles and Tedds (2002a), Dell’Anno and Schneider (2003) and Bajada and Schneider (2005). In this paper, we will react and provide some answers to Breusch’s criticisms with special reference to the criticisms of the Dell’Anno and Schneider (2003) paper. According with us, the MIMIC model is still one of the best approaches to this purpose.shadow economy; MIMIC model; structural modelling.

An ARDL model of unrecorded and recorded economies in Turkey

Purpose: The goal of this paper is twofold: to estimate the unrecorded economy (UE) of Turkey over the period 1987-2007 using a revised version of the currency demand approach and to analyze the relationship between UE and recorded GDP. Design/methodology/approach: we propose to measure UE by the autoregressive distributed lag (ARDL) approach to cointegration analysis. Toda- Yamamoto causality tests are also conducted to identify the relationship between unrecorded and recorded GDP. Findings: This research provides fresh evidence on the size of the UE to the recorded GDP in Turkey which ranges from 10.7% to 18.9% over the estimation period. Moreover, empirical evidence concretely suggests that causality runs from the recorded GDP to the UE. However, there exists a mild reverse causality. Research limitations/implications: Measures of the UE, and particularly those based on monetary approaches, have been criticized on several accounts, including their lack of robustness and weak theoretical foundations (e.g. the velocity of money in the recorded economy and in the UE is the same). Practical implications: The analysis suggests that the UE is pro-cyclical with respect to the recorded GDP. It suggests that the phenomenon of UE is more dangerous when the economy is in expensive phase. Hence, during a positive business cycle it is clearly desirable for government the anti-UE controls should be more effective. Originality/value: The ARDL approach to estimating the size of UE eliminates criticism that the previous currency demand estimations are based on partial adjustment models. Therefore, our econometric selected cointegration methodology and causality test is an improvement over the existing studies

Diversity and spatial distribution of metalreducing bacterial assemblages in groundwaters of different redox conditions

The spatial distribution and diversity of metal-reducing bacterial assemblages belonging to Geobacteraceae were studied in groundwaters with different physicochemical characteristics by means of terminal-restriction fragment length polymorphism (T-RFLP) molecular fingerprinting, as applied to the 16S rRNA gene. The physicochemical conditions of these environments were unfavorable to support active-metal-reducing processes. The highest diversity of Geobacteraceae was observed in groundwater samples characterized by the highest dissolved Fe and Mn concentrations. T-RFLP analyses revealed major differences in the Geobacteraceae ribotype diversity and community composition of the groundwater samples as well as a considerable variability and spatial turnover of Geobacteraceae assemblages. Results from this work suggest that changes in the physicochemical characteristics of the aquifer deeply influence the richness and community structure of Geobacteraceae, even in those systems in which metal-reduction processes are not dominant. [Int Microbiol 2009; 12(3):153-159

How did the Great Recession affect Gender disparity in Europe? An analysis by a Multidimensional Deprivation approach

This paper analyses how the Great Recession affected the gender disparity in material and social deprivation in Europe. We propose multidimensional non-monetary indexes of absolute and relative (i.e. using peer comparisons) deprivations estimated on data from the European Quality of Life Survey for the waves 2007 and 2011. We find that the Great Recession decreased gender disparity over all the dimensions of deprivations. By applying a Blinder-Oaxaca decomposition, we estimate that this decline of gender gap has depended on a reduction of the difference in characteristics between genders that has more than offset an increase of gender discrimination

Informality, Inequality and ICT in Transition economies

In this paper, we examine the role of the quality of institutional infrastructure and information and communication technology (ICT) in the relationship between the size of the informal sector (IS) and income inequality. Following our results, the sign of the relationship between IS and income inequality depends on the quality of institutions. When institutions are weak, agents invest less human capital and ICT in the formal sector (FS), thereby reducing income inequality. Utilizing panel data for sixteen transition countries we show that the relationship between the size of the IS and the level of income inequality is ambiguous. Our findings highlight the problem of measuring the relative size of the IS which is a hidden entity. We control for robustness of our findings using alternative proxies of ICT, human capital, and institutional quality and some interaction terms among these variables

Maximal Fines and Corruption: An Experimental Study on Illegal Waste Disposal

Corruption is known to be one of the real life situations which may jeopardize the effectiveness of fines in deterring crime. We present a model of ‘crime with corruption’ by which both the dilution of crime deterrence due to corruption, as well as the possibility of crime encouraging fines are formally highlighted. More importantly, by running an experiment on a subject pool of students for the case of illegal waste disposal, we provide experimental evidence on the validity of our theoretical predictions. We find that increasing fine rate may become crime encouraging or at least ineffective, beyond a context-specific fine threshold. In a policy perspective, we suggest that the optimal design of a crime-deterring sanctioning system must simultaneously account for both corruption practices and anti-corruption policies

Environmental hazard assessment of a marine mine tailings deposit site and potential implications for deep-sea mining

Portmán Bay is a heavily contaminated area resulting from decades of metal mine tailings disposal, and is considered a suitable shallow-water analogue to investigate the potential ecotoxicological impact of deep-sea mining. Resuspension plumes were artificially created by removing the top layer of the mine tailings deposit by bottom trawling. Mussels were deployed at three sites: i) off the mine tailings deposit area; ii) on the mine tailings deposit beyond the influence from the resuspension plumes; iii) under the influence of the artificially generated resuspension plumes. Surface sediment samples were collected at the same sites for metal analysis and ecotoxicity assessment. Metal concentrations and a battery of biomarkers (oxidative stress, metal exposure, biotransformation and oxidative damage) were measured in different mussel tissues. The environmental hazard posed by the resuspension plumes was investigated by a quantitative weight of evidence (WOE) model that integrated all the data. The resuspension of sediments loaded with metal mine tails demonstrated that chemical contaminants were released by trawling subsequently inducing ecotoxicological impact in mussels' health. Considering as sediment quality guidelines (SQGs) those indicated in Spanish action level B for the disposal of dredged material at sea, the WOE model indicates that the hazard is slight off the mine tailings deposit, moderate on the mine tailings deposit without the influence from the resuspension plumes, and major under the influence of the resuspension plumes. Portmán Bay mine tailings deposit is a by-product of sulphide mining, and despite differences in environmental setting, it can reflect the potential ecotoxic effects to marine fauna from the impact of resuspension of plumes created by deep-sea mining of polymetallic sulphides. A similar approach as in this study could be applied in other areas affected by sediment resuspension and for testing future deep-sea mining sites in order to assess the associated environmental hazards.info:eu-repo/semantics/publishedVersio

Microbiome-assisted restoration of degraded marine habitats: a new nature-based solution?

Microorganisms interact with all biological components in a variety of ways. They contribute to increase the efficiency of marine food webs and facilitate the adaptation of multicellular organisms to climate change and other human-induced impacts. Increasing evidence suggests that microbiomes are essential for the health of marine species, for maintaining productive marine ecosystems, and thus for the sustainable functioning of the global biosphere. Marine microbiomes are typically species- or habitat-specific and are susceptible to environmental and human-driven changes. The microbiota of seagrasses, macroalgae, mangroves or tropical corals benefits their hosts by increasing their fitness, contributing to the removal of toxic compounds, conferring protection against pathogens, and/or supporting nutrient requirements. Alterations of the microbiomes might have negative consequences on species’ health, survival, and overall ecosystem functioning. Despite the key ecological role of microbiomes in all ecosystems, their potential for the restoration of degraded habitats is still largely unexplored. Here we present a literature survey of the existing information on the microbiota associated with habitat-forming species and suggest that the resilience/recovery of damaged marine habitats can depend largely on the changes in the microbiota. Nature-based solutions relying on microbiome analyses (also through omics approaches) enable health monitoring of transplanted organisms/metacommunities and potential identification/production of probiotics/bio-promoters to stabilize unhealthy conditions of transplants. In the context of international strategies concerning ecological restoration, the use of the scientific knowledge acquired on the marine microbiome deserves to be exploited to assist both traditional and innovative restoration approaches. The success of habitat restoration may depend on our ability to maintain, along with the restored species and habitats, a functional microbiota

A submarine volcanic eruption leads to a novel microbial habitat

Submarine volcanic eruptions are major catastrophic events that allow investigation of the colonization mechanisms of newly formed seabed. We explored the seafloor after the eruption of the Tagoro submarine volcano off El Hierro Island, Canary Archipelago. Near the summit of the volcanic cone, at about 130 m depth, we found massive mats of long, white filaments that we named Venus’s hair. Microscopic and molecular analyses revealed that these filaments are made of bacterial trichomes enveloped within a sheath and colonized by epibiotic bacteria. Metagenomic analyses of the filaments identified a new genus and species of the order Thiotrichales, Thiolava veneris. Venus’s hair shows an unprecedented array of metabolic pathways, spanning from the exploitation of organic and inorganic carbon released by volcanic degassing to the uptake of sulfur and nitrogen compounds. This unique metabolic plasticity provides key competitive advantages for the colonization of the new habitat created by the submarine eruption. A specialized and highly diverse food web thrives on the complex three-dimensional habitat formed by these microorganisms, providing evidence that Venus’s hair can drive the restart of biological systems after submarine volcanic eruption