Showing 1 - 10 of 2,367
This paper introduces contemporaneously available monetary data into an "equilibrium" model that combines rational expectations, market clearing, and incomplete information about monetary disturbances. Data on the current money stock involve a preliminary estimate that is subject to a subsequent...
Persistent link: https://www.econbiz.de/10013228259
In developing countries, informal firms (those that are not registered with the government) account for about half of all economic activity. We consider three broad views of the role of such firms in economic development. According to the romantic view, these firms would become the engine of...
Persistent link: https://www.econbiz.de/10013138466
We establish five facts about the informal economy in developing countries. First, it is huge, reaching about half of the total in the poorest countries. Second, it has extremely low productivity compared to the formal economy: informal firms are typically small, inefficient, and run by poorly...
Persistent link: https://www.econbiz.de/10013052683
This paper investigates the determinants of informal economic activity. We present two equilibrium models of informality and test their implications using a survey of 48,000+ small firms in Brazil. We define informality as tax avoidance; firms in the informal sector avoid tax payments but suffer...
Persistent link: https://www.econbiz.de/10012775833
Growth and structural transformation of the manufacturing sector in developing countries are generally considered to be the result of the expansion of the "modem" (large-scale) sector relative to the "traditional" (small-scale) sector. Examining the sources of labor productivity growth in...
Persistent link: https://www.econbiz.de/10013247412
stress in Mexico and this retards the growth of skills of its workforce. (2) The informal sector is large, mostly due to the …
Persistent link: https://www.econbiz.de/10013135761
A general equilibrium model featuring multiple realistic sources of financial frictions is developed to study how different constraints interact in equilibrium. We highlight, distinguish, and evaluate their differential impacts and rich interactions. The economic impact of financial inclusion...
Persistent link: https://www.econbiz.de/10013030631
rising wage inequality, focusing on the 1985 Mexican trade reform. Wage inequality in Mexico rose after the reform, which is … puzzling in a Heckscher-Ohlin context if Mexico has a comparative advantage in producing low skill-intensive goods …
Persistent link: https://www.econbiz.de/10013226555
which these three goals are compatible. The analysis indicates that Argentina, Brazil and Mexico are now all capable of …
Persistent link: https://www.econbiz.de/10013243643
This paper studies the relationship between trade liberalization and informality. It is often claimed that increased foreign competition in developing countries leads to an expansion of the informal sector, defined as the sector that does not comply with labor market legislation. Using data from...
Persistent link: https://www.econbiz.de/10013232141