Estimate size of underground economy in iran and Investigation Causes and effects

The extend underground economy ia main of economic problem in iran.the underground economy very incersed in recent year in iran. This paper aim to estimate the size of the IRAN underground economy from 1974 to 2013. In order to carry out the econometric analysis, a multiple indicators multiple causes (MIMIC) model to obtain time series and investigated main causes and effect of underground economy. The results indicated that the size of underground economy Was associated with an increased in the period. although, that indicated fluctuations and less severe in first half of study but shows quite ascending in the past two decades.the size of underground economy from 7 percentege gross national product from 1974 Increased to 38/5 in 2013.also result indicated most effect of underground economy is on money market.main causes of underground economy include: first inflaition next direct tax, openence, size of government and unemployment rate.