In this article we use a multivariate framework to estimate net profits and levels of capital and labor for informal Mexican microfirms had they been formal. We estimate a Roy model to simultaneously model three different microfirm responses conditional on the sector (formal or informal) choice....

We study the relationship between information acquisition and trust in financial decision making. A field experiment with a variation of the trust game was conducted with the partners of a financial cooperative located in a Mexican rural area. Individuals who frequently visit friends are more...

In this article we use a multivariate framework to estimate net profits and levels of capital and labor for informal Mexican microfirms had they been formal. We estimate a Roy model to simultaneously model three different microfirm responses conditional on the sector (formal or informal) choice....