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.
Original language | English |
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Journal | Economics Letters |
Volume | 124 |
Issue number | 1 |
Pages (from-to) | 151-156 |
ISSN | 0165-1765 |
DOIs | |
Publication status | Published - 2014 |