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.
Original languageEnglish
JournalEconomics Letters
Volume124
Issue number1
Pages (from-to)151-156
ISSN0165-1765
DOIs
Publication statusPublished - 2014

Cite this