Two stylized representations are often found in the academic and policy literature on informality and formality in …

important channel through which informality can affect productivity: access to credit and external finance. Informality is …

A stylized prediction of the development economics discourse is that informality will disappear with development. And … yet in the last twenty years conventional measures of informality, far from declining, have either remained stagnant or … have actually increased. What exactly is informality and what are its magnitudes and trends? What are the causes of …

between two second-best alternative devices: costly monitoring and credit rationing. We show that investment depends on both … the lending rate and the information structure. Since monitoring incentives increase with interest rate margins, the …

(keiretsu) and main banks have monitoring functions. They find that MoF and BoJ retirees do move into banks that perform badly … private banks is positively related to specific main bank relationships. The hypothesis of monitoring by keiretsu is rejected …

We develop a model of price formation in a dealership market where monitoring of the information flow requires costly … effort. The result is imperfect monitoring, which creates profit opportunities for speculators, who do not act as dealers but … monitoring can help to sustain non-competitive spreads. We show that protecting dealers against the execution of stale quotes can …

We investigate the nature of monitoring by stake holders using data on Japanese manufacturing firms. Shareholders and … advertising, R&D and entertainment expenses. Monitoring of this type takes place even when the monitored firm is not in financial … distress. Although in Japan it is difficult to distinguish empirically between monitoring motivated by debt and monitoring …

liquidity cycles. Monitoring decisions by market-makers and market-takers are self-reinforcing, generating multiple equilibria …

superior as it also lowers public’s monitoring cost. Nevertheless, independent central bankers are less likely to embrace it if …

deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending …