Heterogeneous Firms and the impact of Government Policy on Welfare and Informality
Sep 21, 2014
Articles in journals
Mendicino, C., Prado, M.
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.