The DOI matches its Crossref record; 24 of the 24 references it cites were found in a registry or an index.
Informal sector: The credit market channel
Open accessAbstract
We build a model of firms' choice between formality and informality. Complying with costly registration procedures allows the firms to benefit from key public goods, enforcement of property rights and contracts, that make the participation in the formal credit market possible. In a moral hazard framework with credit rationing, their decision is shaped by the interaction between the cost of entry into formality, and the relative efficiency of formal versus informal credit mechanisms and their related institutional arrangements. The model is consistent with existing stylized facts on the determinants of informality.
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Cites
Legal Determinants of External Finance
LA PORTA, R., LOPEZ‐DE‐SILANES, F., SHLEIFER, A., & VISHNY, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb02727.x · Cited by 9,783
La Porta, R. (1999) · Journal of Law, Economics, and Organization · doi:10.1093/jleo/15.1.222 · Cited by 5,699
The Benefits of Lending Relationships: Evidence from Small Business Data
PETERSEN, M. A., & RAJAN, R. G. (1994) · The Journal of Finance · doi:10.1111/j.1540-6261.1994.tb04418.x · Cited by 5,440
Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002) · The Quarterly Journal of Economics · doi:10.1162/003355302753399436 · Cited by 3,956 · cited 6×
“Although Friedman et al. (2000) present instrumental regressions using the set of instruments suggested by La Porta, Lopez-de-Silanes, Shleifer and Vishny (1997, 1999), which includes ethnolinguistic fragmentation, origin of the legal system, religious composition and latitude, some recent works suggest that at least…”
InfluentialFinancial Intermediation, Loanable Funds, and The Real Sector
Holmstrom, B., & Tirole, J. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555316 · Cited by 3,889
Shadow Economies: Size, Causes, and Consequences
Schneider, F., & Enste, D. H. (2000) · Journal of Economic Literature · doi:10.1257/jel.38.1.77 · Cited by 3,024
Legal Determinants of External Finance
Porta, R. L., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R. W. (1997) · The Journal of Finance · doi:10.2307/2329518 · Cited by 2,031
Dodging the grabbing hand: the determinants of unofficial activity in 69 countries
Friedman, E., Johnson, S., Kaufmann, D., & Zoido-Lobaton, P. (2000) · Journal of Public Economics · doi:10.1016/s0047-2727(99)00093-6 · Cited by 1,559
The Unofficial Economy in Transition
Johnson, S., Kaufmann, D., Shleifer, A., Goldman, M. I., & Weitzman, M. L. (1997) · Brookings Papers on Economic Activity · doi:10.2307/2534688 · Cited by 1,166
The economics of the informal sector: a simple model and some empirical evidence from Latin America
Loayza, N. V. (1996) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/s0167-2231(96)00021-8 · Cited by 1,087
Cited by
What causes firms to hide output? The determinants of informality
Dabla-Norris, E., Gradstein, M., & Inchauste, G. (2008) · Journal of Development Economics · doi:10.1016/j.jdeveco.2006.05.007 · Cited by 429
Does it pay firms to register for taxes? The impact of formality on firm profitability
McKenzie, D., & Seynabou Sakho, Y. (2010) · Journal of Development Economics · doi:10.1016/j.jdeveco.2009.02.003 · Cited by 302
Metadata
- Authors
- Straub, S.
- Venue
- Journal of Development Economics
- Publisher
- Elsevier BV
- Published
- 2005-12
- Volume
- 78
- Issue
- 2
- Pages
- 299-321
- ISSN
- 0304-3878 (ISSN-L)
- OpenAlex
- W2052650558
- Cited by
- 393
- References
- 24
- FWCI
- 47.66
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
