Elgin, Ceyhun; Uras, Burak - In: SERIEs : Journal of the Spanish Economic Association 4 (2013) 3, pp. 309-331
This study investigates the relationship between financial development and the size of the informal economy. We build a model in which an exogenous variation in the size of the informal sector creates two effects on financial development. Specifically, informal sector harms financial development...