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In this paper we present some thematic aspects related to the study of informal sector in the Republic of North Macedonia for the period [1998, 2016]. So, by conventional application of CDA model we perceived problematic issues in the estimation of the informal economy. To recover the model aftermaths, we assisted the calculation procedures by additional descriptive analysis aimed on avoiding the regression disturbances from critical dynamics. By evidencing the presence of self-organization regimes in some money-type variables, we identified the intervals where data series behaved highly nonlinearly. Consequently, by excluding parts of series up to a reasonable point (herein before 2004), the CDA predictions for the size of informal economy and the relationship with its factors has been improved remarkably. Next, we used factorial analysis to facilitate the design of the n-p-m MIMIC model. This investigation applied in 22 candidate factors suggested the configuration 9-2-3 as optimal structure for the model. In particular this model anticipated two terms confined in the latent variable structure, respectively in the range [0.35, 0.38] and [0.023, 0.08] part of the GDP. We assigned them as subparts of informal economy reflecting differenced influences or weights of certain cause factors. We observed that the estimated effect of the factors included in the model followed theoretical expectation.

In this paper we discuss some findings on the estimation of the informal economy in a particular economical system, the Republic of Macedonia. We observed that undeviating application of standard models could produce different results and therefore some preliminary precaution has been taken. Therefore, by performing step by step analysis we conclude in acceptable values and in the evidencing of dominant factors that simulate informal economy. The work reveals the importance of model’s assumption fulfilling in the case of economic systems where observables are non-stationary and the economy itself is typically in dynamical evolution. As result of such improvement of the procedure we obtained that the country’s informal economy is going slight down starting from a local peak value touched in 2010-2011. By now it is stabilized around the values 33%-35% of GDP. We obtained herein that the majority of economic and political measures undertaken recently in the framework of informality reduction have worked in the aimed direction. From the factors point of view we obtained that contribution of some variables in the informal economy growth in the period analyzed