The aim of this paper is to quantify the role of formal-sector institutions in shaping the demand for human capital and the level of informality. We propose a firm dynamics model where firms face capital market imperfections and costs of operating in the formal sector. Formal firms have a larger...

We study the dynamic general equilibrium effects of introducing a social pension program to elderly informal sector workers in developing countries who lack formal risk sharing mechanisms against income and longevity risks. To this end, we formulate a stochastic dynamic general equilibrium model...

This paper examines the determinants of the decision of owners of small enterprises in Ghana to participate in the informal sector at start-up. For enterprises participating in the informal sector, the paper evaluates whether there are linkages with formal sector enterprises, and the...

Firms operating on production linkages through vertical integration with other firms are generally expected to possess a secured market for their output and better accessibility to inputs. We test the hypothesis whether or not the informal firms operating on contracts with formal...

The main purpose of this paper is to evaluate the effects of economic policies on informal sector performances and poverty in Cameroon. It is based on a computable general equilibrium. The model has 5 production sectors including 2 commercial sectors, 2 tradable sectors and 1 non tradable...

Achieving the long-term economic growth rate and development is the aspiration of all economic policy makers. Contemporary economic theory recognizes institutions as fundamental sources of economic prosperity. According to Douglas North (1991), institutions represent designed limitations that...

In this study, we investigate the relationship between the size of the informal economy and the level of environmental pollution/energy use. To this end, we first use different indicators of environmental pollution along with a measure of energy use intensity in a panel dataset consisting of 152...

The CuveWaters project relates the alignment and implementation of innovative water technologies to an Integrated Water Resources Management (IWRM) in the Cuvelai-Etosha-Basin, which lies in Central Northern Namibia. The aim here is to improve inhabitants’ living conditions by means of...

There exists a longstanding discussion of the role of the informal economy in the development process of Third World countries, notably in Africa. Much of the controversy was concerned with the question whether the informal sector promotes development or should rather be considered as a barrier...

Auxiliary institutions fail to perform the function of protecting economic agents’ trust in the liquidity of various monetary obligations. Still, despite these conclusions, there exist some forms of monetary arrangements that seemingly demonstrate a high level of trust among their...