Within a general equilibrium framework of a developing economy with a foreign owned factor of production, this paper questions whether the informal-formal sector relationship is pro-cyclical/complementary - expansion or contraction in one necessarily implies an expansion or contraction in the...

Within a general equilibrium framework of a developing economy with a foreign owned factor of production, this paper questions whether the informal-formal sector relationship is pro-cyclical/ complementary – expansion or contraction in one necessarily implies an expansion or contraction in the...

Within a general equilibrium framework of a developing economy with a foreign owned factor of production, this paper questions whether the informal-formal sector relationship is procyclical/ complementary - expansion or contraction in one necessarily implies an expansion or contraction in the...

This paper compares the deterministic and stochastic predictors of nonlinear models when the disturbances are small. Large-sample properties of these predictors have been analyzed extensively in the econometric literature. While the deterministic predictors are asymptotically biased, there are...