Coming out of the shadows? Estimating the impact of bureaucracy simplification and tax cut on formality in Brazilian microenterprises

This paper evaluates the impact of a program of bureaucracy simplification and tax reduction on formality among Brazilian microenterprises — the SIMPLES program. We document an increase of 13 percentage points in formal licensing among retail firms created after the program when compared to firms in ineligible sectors. The impact on retailers is robust to a series of tests. We find no impact on construction, transportation, services and manufacturing sectors.

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Year of publication:	2012
Authors:	Monteiro, Joana C.M. ; Assunção, Juliano J.
Published in:	Journal of Development Economics. - Elsevier, ISSN 0304-3878. - Vol. 99.2012, 1, p. 105-115
Publisher:	Elsevier
Subject:	Informal economy \| Tax legislation \| Bureaucracy

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Type of publication:	Article
Classification:	D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption ; E26 - Informal Economy; Underground Economy ; K34 - Tax Law
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011065904