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

Caterina Mendicino; Mauricio Prado

doi:10.1016/j.econlet.2014.04.018

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

Caterina Mendicino, Mauricio Prado

Department of Economics

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.

Original language	English
Journal	Economics Letters
Volume	124
Issue number	1
Pages (from-to)	151-156
ISSN	0165-1765
DOIs	https://doi.org/10.1016/j.econlet.2014.04.018
Publication status	Published - 2014

Cite this

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

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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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. https://doi.org/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

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KW - Firm heterogeneity

KW - Production complementarity

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KW - Enforcement

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DO - 10.1016/j.econlet.2014.04.018

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