This paper models misreporting fraud in the VAT when firms are heterogeneous in the level of unverifiable transactions and subjective evasion costs. Unverifiable transactions are determined by the level of sales to final consumers and the subjective evasion costs change the curvature of the cost...

We use monthly and daily transaction data from Iran, disaggregated by provinces, good and service categories, and retail store segments to gauge the impact of government emergency loans on consumption patterns. We find that emergency loans are positively related with higher consumption of...

This paper studies the impact of replacing sales tax by value-added tax (VAT) on production efficiency and informality among Indian states. We disentangle the production efficiency gains caused by removing the distortions of sales tax from the increase in enforcement caused by VAT's input refund...

This paper gauges the effect of financial deepening and bank outreach on informality using micro data from the Indian manufacturing sector and exploiting cross-industry variation in the need for external finance. We distinguish between two channels through which access to finance can reduce...