Measuring the Dynamics of Informality: A Panel FAVAR Approach

As part of the INSEAI Project, CEOS.PP is organising the webinar Measuring the Dynamics of Informality: A Panel FAVAR Approach, dedicated to presenting an innovative methodology for the informal economy.

The webinar, which will take place on 16 July in the CEOS.PP Great Hall and online, will be led by Javier Baquero Pérez and Daniel Fernández Romero. During the session, an approach based on the Panel Factor-Augmented Vector Autoregression (Panel FAVAR) model will be presented. This model enables the estimation of the unobserved informal economy by integrating multiple observable indicators over time and across different countries. This methodology captures the latent dynamics of informal economic activity, reconciling the heterogeneity between economies with the identification of common factors. The model also allows for a more complex analysis of the economy’s responses to public policy shocks, making it a valuable tool for monitoring trends in informality and assessing its macroeconomic implications.

About the speakers:

Javier Baquero Pérez is an assistant professor in the Department of Economic Structure and Development Economics at the Autonomous University of Madrid (UAM). He holds a PhD in Economics and Business Administration from the same institution, is a member of the SET-LASE research group and is the UAM coordinator for the European project INSEAI 2023 – Marie Skłodowska-Curie Actions & Support to Experts. He is also the author of several articles published in international scientific journals and was awarded the 2021 Prize for Excellence in Research by the Faculty of Economics and Management at the UAM.

Daniel Fernández Romero holds a PhD in Economics and Business Administration from the Autonomous University of Madrid and is a researcher with the Labor and Structural Transformations in Spain and the European Union (LAST) group at the Complutense University of Madrid. His research focuses on the use of administrative microdata and empirical methods to analyse the effects of wage, fiscal and monetary policies on workers, households and economic inequality. His work has been published in several leading international scientific journals.

Event Details

Link: https://meet.google.com/trp-moxe-uoc

Organisation

Anabela Mesquita

Sandrina Teixeira