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• W1567104860 abstract "We document cross-country dierences in informal activity, government policies and institutions using a data set covering 118 countries. Five key facts emerge from this data set. Better institutions are associated with lower in‡ation, higher income tax rates and less informal activity. Related to these, we also …nd that higher levels of informal activity is associated with lower income tax rates and higher in‡ation. We develop a general equilibrium model where households optimally choose the extent of informal activity and a benevolent government optimally chooses policies, both taking as given the institutions of the economy. The model is able to account for most of the cross-country dierences in policies and informal activity as well as other key facts that emerge from the data. The performance of the model is signi…cantly reduced for various subsets of countries, where some of the key assumptions that underlie our model are violated." @default.
• W1567104860 created "2016-06-24" @default.
• W1567104860 creator A5033390841 @default.
• W1567104860 date "2010-01-01" @default.
• W1567104860 modified "2023-09-27" @default.
• W1567104860 title "Informal Sector, Government Policy and Institutions" @default.
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