Access to Credit and the Size of the Formal Sector.
This paper studies the link between credit conditions and formalization in Brazil. Over the last decade, Brazil has experienced a large increase in the level of credit and the rate of formalization, these changes are linked to a reduction in the cost of credit and policy reforms oriented toward impr...
| Publicado en: | Economía Vol. 16; no. 2; pp. 143 - 200 |
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| Formato: | Artículo |
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London School of Economics & Political Science
Spring2016
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=114923882&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 114923882 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 15297470 N8H jtl: Economía issn: 15297470 maglogo: N pubinfo: dt: Spring2016 vid: 16 iid: 2 pid: 66142 pub: London School of Economics & Political Science artinfo: ui: 114923882 10.31389/eco.80 ppf: 143 ppct: 57 formats: fmt: @attributes: type: P size: 18MB tig: atl: Access to Credit and the Size of the Formal Sector. aug: au: D'ERASMO, PABLO N. affil: Federal Reserve Bank of Philadelphia su: Brazil Industrial productivity Commercial credit Regulatory reform Corporate debt Intermediation (Finance) Financial ratios Business size Commercial policy sug: subj: Industrial productivity Brazil Administration of General Economic Programs Miscellaneous Intermediation Other Activities Related to Credit Intermediation All Other Nondepository Credit Intermediation All other non-depository credit intermediation Commercial credit Regulatory reform Corporate debt Intermediation (Finance) Financial ratios Business size Commercial policy keyword: Aggregate productivity Financial structure Informal sector Aggregate productivity Financial structure Informal sector ab: This paper studies the link between credit conditions and formalization in Brazil. Over the last decade, Brazil has experienced a large increase in the level of credit and the rate of formalization, these changes are linked to a reduction in the cost of credit and policy reforms oriented toward improving the efficiency of the financial sector. The paper develops a model with endogenous formal and informal sectors to evaluate how much of the change in corporate credit and the size of the formal sector can be attributed to a reduction in financial intermediation costs. The model predicts that the reduction in intermediation costs generates an increase in the credit-to-output ratio and the fraction of formal workers, in line with the data. By affecting the allocation of capital and the entry and exit rates, the change in credit conditions has important implications for the firm size distribution and aggregate productivity. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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