Estimating the size of informal economy in a post-transition country – the case of Poland

The size of the informal economy in Poland is estimated by means Currency Demand Approach (CDA). Using quarterly data for period 1999–2019, we adopt two separate econometric approaches. First, specify a single equation model to estimate it with Fully-Modified OLS method. Second, CDA coefficients are treated as cointegrating vector cointegrated VAR. found have diminished from about 32% GDP 2000 12% 2019. We provide confidence intervals our estimates which, best knowledge, rarely presented literature; their width ranges 3 7% GDP.