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This paper examines a much overlooked link between credit markets and formalization: since access to bank credit typically requires compliance with tax and employment legislation, firms are more likely to incur such formalization costs once bank credit is more widely available at lower cost; if...
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and legalization. While introducing a legal market reduces the profits of illegal providers, it increases cannabis … consumption. We show that this trade-off can be overcome by combining legalization with sanctions against users and suppliers of … proposed policy mix can control the increase in cannabis consumption post-legalization and throttle the illegal market. The …
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