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This work examines America's growing underground economyits size, nature, and economic effects. The study begins with a critical analysis of the various methods used for measuring the size of the underground economy in the United States. It then develops a definition of the underground economy which is consistent with our system of national accounts. A sectorbysector approach is used to measure the actual size of this subeconomy and to estimate the labor force involved. Finally, the author explores the economic consequences for the general economy of significant underground economic activityfor example: tax evasion, economic efficiency, and cyclical aspects.This work will be of interest to scholars, students, and policymakers in economics, economic policy, political science, and criminology.
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