Estimation of the Informal Economy: An Application of Fuzzy Sets

Data on “Informal Economy” magnitudes are relevant for the establishment of adequate micro and macro economics but, there are very few indicators in this respect. The goal of this paper is to generate a temporal series that would describe the informal economy in Brazil. For this purpose fuzzy logic was used. The input variables were a degree of economic opening as well as the tax load rate in relation to GNP (Grow National Product).