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

Caterina Mendicino, Mauricio Prado

Research output: Contribution to journalJournal articleResearchpeer-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

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    title = "Heterogeneous Firms and the Impact of Government Policy on Welfare and Informality",
    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.",
    keywords = "Firm heterogeneity, Production complementarity, Taxation, Enforcement, Regulation",
    author = "Caterina Mendicino and Mauricio Prado",
    year = "2014",
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    language = "English",
    volume = "124",
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    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 journalJournal articleResearchpeer-review

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    AU - Prado,Mauricio

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    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

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    M3 - Journal article

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    JO - Economics Letters

    T2 - Economics Letters

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