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来源类型Working Paper
规范类型报告
DOI10.3386/w8823
来源IDWorking Paper 8823
A Theory of the Informal Sector
Yoshiaki Azuma; Herschel I. Grossman
发表日期2002-03-07
出版年2002
语种英语
摘要In many countries, especially poor countries, a heavy burden of taxes, bribes, and bureaucratic hassles drives many producers into the informal sector. Is this situation explicable only as a consequence of either the ignorance or the ineptitude of the state authorities? On the contrary this paper shows that we can attribute the existence of a large informal sector to the fact that, because productive endowments contain important unobservable components, the state cannot adjust the amounts that it extracts from producers in the formal sector according to each producer's endowment. Given this fact we find that, if either the distribution of endowments is sufficiently inegalitarian or the production of private substitutes for public services is sufficiently easy, then the state would extract a large enough amount from producers in the formal sector that poorly endowed producers would choose to work in the informal sector. This result obtains both for a proprietary state, which maximizes its own net revenue, and for a hypothetical benevolent state, which would maximize the total net income of producers. But, we also find that a proprietary state would create an informal sector for a larger set of combinations of parameter values than would a hypothetical benevolent state.
主题Public Economics ; Other ; Law and Economics
URLhttps://www.nber.org/papers/w8823
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/566430
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Yoshiaki Azuma,Herschel I. Grossman. A Theory of the Informal Sector. 2002.
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