Trade liberalization in Latin America has substantially altered business opportunities andeconomic development in the region. As barriers to competing inputs have come down andforeign investment in the region has gone up, small, domestic firms have struggled to stayafloat. Many small businesses...

"The Tragedy of the Commons can be likened to the now popular term 'Sustainable Development', as both of them refer to the need to appropriately and cooperatively manage shared resources, in order to maintain a balance between different generations of people inhabiting a particular niche within...

The informal economy often comprises a significant portion of a country's GDP. As this income is not, by definition, taxed or regulated by the government, informal activity presents obvious problems, such as loss of tax revenue, which leads to a lower provision of public goods. However, there is...

The literature on economics of transition has suggested a number of scenarios to explain unemployment and labour reallocation in Eastern Europe. However, it has recently been argued that these so-called Optimal Speed of Transition (OST) studies do not account for many stylized facts concerning...

This work revisits the role of regulations in emergence o f the shadow economy. In particular, it supplements the previous theoretical research that mainly ignored the fact that the decision to “go underground” is essentially a result of both employers and employees interacting in the labour...

This paper analyses the emergence of the informal economy in the environment characterised by non-competitive labour markets with wage bargaining. We develop a simple extension of the standard search model à la Pissarides (2000) with formal and informal sectors to show how a government’s...