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** …

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 …

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

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 …

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 …

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) …

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 …

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 …

Management has a large effect on the productivity of medium and large firms. But does
management matter in micro and small firms, where the majority of the labor force in …