This article reviews the economic literature on informality, its causes, and its consequences
for development. It covers a comprehensive body of research that ranges from well-identified …

This article reviews an emerging body of evidence on relational contracts, defined as
informal arrangements sustained by the value of future interactions. We focus on develo** …

The winners of the Nobel Prize show how economics, when done right, can help us solve
the thorniest social and political problems of our day. Figuring out how to deal with today's …

Starting in the early 1990s, countries in southern Europe experienced low productivity
growth alongside declining real interest rates. We use data for manufacturing firms in Spain …

In develo** countries, informal firms account for up to half of economic activity. They
provide livelihood for billions of people. Yet their role in economic development remains …

Behavioral development economics applies theories and ideas from psychology and
behavioral economics to the study of questions in development economics. We begin by …

There is a consensus that global value chains have aided develo** countries' growth. This
essay highlights the governance complexities arising from participating in such chains …

This paper develops and estimates an equilibrium model where heterogeneous firms can
exploit two margins of informality:(i) not register their business, the extensive margin; and (ii) …

We study the effects of becoming a supplier to multinational corporations (MNCs) using tax
data tracking firm-to-firm transactions in Costa Rica. Event study estimates reveal that …

Almost all firms in develo** countries have fewer than ten workers, with a modal size of
one. Are there potential high-growth entrepreneurs, and can public policy help identify them …