A stochastic production function analysis of the 212 regions of Veracruz province in southern Mexico reveals some inefficiency in manufacturing, mining, trade and service sectors in recent years. Poverty indices appear to influence a region’s ability to combine capital and labor to create...

Using recently available night lights and electricity consumption data for the 212 municipios (counties) of Veracruz state in southern Mexico, the informal economy is analyzed at the Mexican county level for the first time with such data. Most counties between 2000 and 2006 are found to have...