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 ?
The Underground Economy and Tax Evasion in Pakistan: Annual Estimates (1960-1998) and the Impact of Dollarisation of the Economy.
Experts' Group Opinion Based Estimation of the Impact of Underground Economy on Tax Burden
Results showed that underground economy observed a decline throughout the periodic range of the study from 51.96 per cent of GDP in 1960 to 35.07 per cent of GDP in 1990.
A transfer from the informal to the official economy is hindered by a shared action problem, whereas the arrangement of exchange in the underground economy depends on unofficial institutions based on regional structures of confidence.
Workers can come into this underground economy in several ways.
Giles [4,5] observed that the rise in research into this area of study is due to the growing problem of foregone revenue resulting from the underground economy. Underestimating the GDP implies, for example, an overestimation of the public deficit/GDP and Debt/GDP ratios; therefore, any fiscal and monetary policy decision would be based on biased official figures [6].
His most recent book, Floating City, is a memoir of his years spent penetrating New York City's vast underground economy, with an emphasis on cocaine and sex.
The strategic objectives proposed by Visa Europe include the cutting of the underground economy by 5 percent within four years, boosting revenues to the GDP to 40 percent (the EU average) in four years and saving RON 1 billion in the distribution of social benefits within five years."Romania promised its international partners that it would achieve a sustainable fiscal consolidation and the underground economy is one of the main barriers to fulfilling this objective.
Participating in the underground economy hurts everyone: The underground economy hurts all of us.
Posing as a music video producer, Pine (media, society, and the arts, Purchase College, SUNY) enters the world of neomelodica music in southern Italy, an informal, underground economy of DIY recording studios, crime clan weddings, counterfeit music, and local pirate TV broadcasts, where crime clan affiliates act as producers and songwriters, while singers are uneducated young men in poor neighborhoods.
Hanif (2010) The Size of Underground Economy in Pakistan.
"Rather than retooling it, they shut it down, and the concern there is that now we're back to the underground economy," Tarry said.

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