black market

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Black market

An illegal market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Black Market

A market for products that are illegal, stolen, or otherwise need to be hidden from regulatory authorities. A black market encompasses the horrific (e.g. human trafficking) as well as the more mundane (e.g. participating in the market to evade taxes). Legal products on a black market are usually less expensive than on the regulated market because sellers do not pay taxes on their goods and services. That said, there is little or no recourse for the customer if and when a black market product fails. It is worth noting that black markets tend to be largest in jurisdictions where there are the most regulations and government monopolies. It is also known as an underground market.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

black market

an unofficial or ‘under-the-counter’ MARKET trading in a product which the government has declared to be illegal (for example narcotic drugs), or on the sale of which the government has imposed controls thus limiting its availability.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

black market

an ‘unofficial’ market that often arises when the government holds down the price of a product below its equilibrium rate and is then forced to operate a RATIONING system to allocate the available supply between buyers. Given that some buyers are prepared to pay a higher price, some dealers will be tempted to divert supplies away from the ‘official’ market by creating an under-the-counter secondary market. See BLACK ECONOMY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Measuring the hidden economy: Implications for econometric modeling.
Thus, individuals in the economy are interviewed to find out their involvement in the hidden economy. The questions typically deal with soliciting information about respondents' role in the underground economy either as a buyer or as a seller (see [3]).
(7) Frey B., Wech-Hanneman H., What produces a hidden economy? An international cross section analysis, Southern Economic Journal, 1983, p.
It is also noteworthy that with reference to some foreign researches' estimations, the extent of black economy have a significant differences--according to the professor of Linco university (Austria) Friedrich Shneider, the share of hidden economy even in 2003 reached 29.4% of GDP in Lithuania (Shneider 2003).
Keywords: Hidden Economy, Size, Causes, Socio-economic Implications, Inclusive Growth and Development, 18th Amendment and 7th NFC Award, Pakistan
The hidden economy can no longer be ignored or dismissed, Williams says.
Pierre Rosanvallon suggests another typology regarding underground economy activities: self-governing economy; and hidden economy.
Gary Ashford, tax investigations director at Grant Thornton in Birmingham, said: "The report found that while HMRC may be unable to affect all the factors driving the hidden economy, it compares well to other authorities in tackling the problem.
Many millions of people who now engage in this hidden economy (it's now at least four times as big as the stock market itself) must know the essentially unproductive nature of their investments.
One result of infitah was the emergence of a hidden economy: informal economic activities and black- and gray-market operations.
In addition to estimating a nation's overall level of corruption, economists are also interested in assessing the size of its hidden economy. In France, for instance, INSSE estimated that 4.3 percent of the GDP was represented by the hidden economy, of which 3 percent was accounted by frauds and fiscal evasion.