Informality among multi-product firms
| dc.creator | Becker, Dennis | |
| dc.date | 2017-04-01T19:44:51Z | |
| dc.date.accessioned | 2026-07-09T11:02:39Z | |
| dc.description | This paper introduces product-level regulation as a new driver of informality and diversification in a model of heterogeneous multi-product firms and endogenous product choice. Firms face regulations at both the firm- and product-level and may comply with or evade either regulation. The model suggests that firm-level regulation directly causes informality by deterring firm registration. However, the product-level regulation has two effects: it directly drives product informality as evasion of product regulation leading to informality within the formal sector and indirectly deters firms from registering. Further, I demonstrate that the Gini coefficient and Herfindahl index can be implemented in multi-product firm models as revenue-based measures of product diversification. Contrary to the prediction of the commonly used product scope, the revenue-based measures indicate informal firms to be more diversified than formal firms. | |
| dc.identifier | doi:10.22004/ag.econ.250009 | |
| dc.identifier | https://ageconsearch.umn.edu/record/250009/files/Cornell-Dyson-wp1421.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/250009 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/624291 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/250009 | |
| dc.title | Informality among multi-product firms | |
| dc.type | Text |