• Title of article

    Financialstructure,informalityanddevelopment

  • Author/Authors

    Pablo N.D’Erasmo، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2012
  • Pages
    17
  • From page
    286
  • To page
    302
  • Abstract
    The impactofcapitalmarketimperfectionsandcostsofcreatingandoperatingformal sectorfirmsontotalfactorproductivityisstudied.Weproposeafirmdynamicsmodel with endogenousformalandinformalsectorswherefirmsfaceatechnologyadoption opportunity.Themodelpredictsthatcountrieswithalowdegreeofdebtenforcement and highcostsofformalityarecharacterizedbylowallocativeefficiencyandlarge outputsharesproducedbylowproductivity,informalsectorfirms.Forfrictions parametrizedusingthe Doing Business database,themodelgeneratesadropintotal factorproductivityofupto25%relativetotheUS
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2012
  • Journal title
    Journal of Monetary Economics
  • Record number

    846522