Public financing with financial frictions and underground economy
研究了金融约束经济中非正规部门的影响，基于巴西正式与非正式部门的企业-员工匹配数据校准创业模型，发现减少企业非正规性的政策能提升总产出、全要素生产率和税收，但减少非正规雇佣强度反而有害。
What are the aggregate effects of informality in a financially constrained economy? We \ndevelop and calibrate an entrepreneurship model to data on matched employer-employee \nfrom both formal and informal sectors in Brazil. The model distinguishes between informality on the business side and the hiring of informal workers by formal businesses. Policies that reduce business informality increase aggregate output by 10.8%, TFP by 6.6%, and tax revenue by 33.2%. On the contrary, output and TFP decrease when policies reduce the \nintensive margin of informality, underscoring that the informal economy can play a positive role in an economy with financial frictions.