Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality

Caterina Mendicino, Mauricio Prado

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

We analyze the formality benefits through productivity-enhancing public goods. We document that: benefits from formality matter for firms’ optimal decisions; there is a disconnect between the objectives of maximizing formality versus welfare; this disconnect is mitigated under higher formality benefits.
We analyze the formality benefits through productivity-enhancing public goods. We document that: benefits from formality matter for firms’ optimal decisions; there is a disconnect between the objectives of maximizing formality versus welfare; this disconnect is mitigated under higher formality benefits.
LanguageEnglish
JournalEconomics Letters
Volume124
Issue number1
Pages151-156
ISSN0165-1765
DOIs
StatePublished - 2014

Keywords

    Cite this

    Mendicino, Caterina ; Prado, Mauricio. / Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality. In: Economics Letters. 2014 ; Vol. 124, No. 1. pp. 151-156
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    keywords = "Firm heterogeneity, Production complementarity, Taxation, Enforcement, Regulation",
    author = "Caterina Mendicino and Mauricio Prado",
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    Mendicino, C & Prado, M 2014, 'Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality' Economics Letters, vol. 124, no. 1, pp. 151-156. DOI: 10.1016/j.econlet.2014.04.018

    Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality. / Mendicino, Caterina; Prado, Mauricio.

    In: Economics Letters, Vol. 124, No. 1, 2014, p. 151-156.

    Research output: Contribution to journal › Journal article › Research › peer-review

    TY - JOUR

    T1 - Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality

    AU - Mendicino,Caterina

    AU - Prado,Mauricio

    PY - 2014

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    N2 - We analyze the formality benefits through productivity-enhancing public goods. We document that: benefits from formality matter for firms’ optimal decisions; there is a disconnect between the objectives of maximizing formality versus welfare; this disconnect is mitigated under higher formality benefits.

    AB - We analyze the formality benefits through productivity-enhancing public goods. We document that: benefits from formality matter for firms’ optimal decisions; there is a disconnect between the objectives of maximizing formality versus welfare; this disconnect is mitigated under higher formality benefits.

    KW - Firm heterogeneity

    KW - Production complementarity

    KW - Taxation

    KW - Enforcement

    KW - Regulation

    U2 - 10.1016/j.econlet.2014.04.018

    DO - 10.1016/j.econlet.2014.04.018

    M3 - Journal article

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    SP - 151

    EP - 156

    JO - Economics Letters

    T2 - Economics Letters

    JF - Economics Letters

    SN - 0165-1765

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    Mendicino C, Prado M. Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality. Economics Letters. 2014;124(1):151-156. Available from, DOI: 10.1016/j.econlet.2014.04.018

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