A low-growth model: Informality as a structural constraint

Cimoli, Mario; Primi, Annalisa; Pugno, Maurizio

doi:10.18356/3995c051-en

Cited by 30 publications

(17 citation statements)

References 32 publications

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“…Specifically, under conditions of strict monitoring, the underground economy is squeezed, unemployment is reduced, and growth is high, whereas if monitoring is lax, the underground economy expands, unemployment is thus absorbed, and growth is low. These conclusions, which cover different issues at the same time, can contribute to the debate on the role of the underground economy in economic development and the policy implications thereof (de Soto ; Johnson, Kaufmann, McMillan, and Woodruff , Friedman, Johnson, Kaufmann, and Zoido‐Lobaton l Farrell ; Carillo and Pugno ; Banerjee and Duflo ; Cimoli, Primi, and Pugno ; La Porta and Shleifer ).…”

Section: Introductionmentioning

confidence: 86%

“…Empirical evidence suggests that underground employment concentrates on low-productivity jobs (Agénor and Aizenman 1999;Garibaldi 2002, 2006;Cimoli, Primi, and Pugno 2006;Bosch and Esteban-Pretel 2009;Mattos and Ogura 2009). Therefore, our first key assumption is as follows:…”

Section: The Matching Frameworkmentioning

confidence: 99%

“…A variety of evidence shows that regular firms employ skilled labour, while underground firms employ unskilled labour (Agénor and Aizenman ; Boeri and Garibaldi ; Boeri and Garibaldi ; Bosch and Esteban‐Pretel ; Cimoli, Primi and Pugno ; Kolm and Larsen ), and that employment in the underground sector and the education level within countries appear to be negatively correlated (Albrecht, Navarro, and Vroman ; Cappariello and Zizza ).…”

mentioning

confidence: 99%

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A matching model of endogenous growth and underground firms

Lisi

Pugno

2015

Int J of Economic Theory

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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Section: Introductionmentioning

confidence: 86%

Section: The Matching Frameworkmentioning

confidence: 99%

mentioning

confidence: 99%

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A matching model of endogenous growth and underground firms

Lisi

Pugno

2015

Int J of Economic Theory

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“…Another interesting aspect of this literature is that it makes the introduction of productive structure into the model relatively easy. Actually, the number of studies that has analyzed the impact of the productive structure on economic growth has increased, as evidenced by the work of authors such as Mario Cimoli, Annalisa Primi, and Maurizio Pugno (2006), Codrina Rada (2007) and José Antonio Ocampo, Rada, and Taylor (2009).…”

Section: Growth and Distribution In Post-keynesian Economicsmentioning

confidence: 99%

Income distribution, productive structure and growth in South America

Amitrano

2017

Panoeconomicus

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Between 2003 and 2012, South American economies experienced a period of relatively high growth rates. That performance was accompanied by considerable improvements in income distribution and poverty indicators. Nonetheless, structural heterogeneity remained one of the central characteristics of these economies. The aim of this paper is to analyze the role income distribution and the productive structure played in the economic growth of Argentina, Brazil, Chile, Colombia, Peru, Uruguay and Venezuela, for the period between 1990 and 2012. this literature, income distribution is the main driver of growth, but special attention will be given to the role of consumer debit and international trade pattern. In the second case, the literature generally sets GDP growth as the main driver of productivity growth, but in this paper some attention will be draw on the role of sectoral composition of the economy. The interaction between these two regimes is called growth regime.In the second section, the paper will describe the main economic data of each of the seven aforementioned countries, trying to set the characteristics of their demand and productivity regimes. Finally, the third section will draw on the common patterns among the countries, inquiring about the existence or not of different growth regimes between groups of countries in South America.In some models, also known as 2nd generation models, post-Keynesian authors have made use of a fairly simple investment function based on, on one hand, the accelerator approach a la Harrod and, on the other hand, the profit rate approach, a la Robinson. This means that the rate of growth of capital stock will be determined by three factors: (i) the animal spirits; (ii) the rate of profit; (iii) the degree of capacity utilization.This investment function shows three important results: (1) capacity utilization becomes endogenously determined and dependent on the autonomous investment, the profit share and the saving rate; (2) economic growth depends on capacity utilization, as well as the aforementioned determinants; (3) an increase in the saving rate and profit share decreases the growth rate (which means that the so called thrift and costs paradoxes are hold). Therefore, one of the major conclusions is that there would not be any opposition between real wage and profit rate, but the opposite. This occurs because the economy would not be on the growth-distribution schedule.However, from the mid-1970s, empirical studies have shown that the relationship between wages and profits could have been negative in some countries. To tackle these evidences, the 3rd generation models, inspired by the work of Bhaduri and and Marglin and Bhaduri (1990) have led to an entire literature able to differentiate demand regimes. These models suggest that the effect of the profit margin on the profit rate ought to be separated from those related to the capacity utilization.

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“…La littérature existante peut être organisée suivant deux critères principaux: la veine de pensée dans laquelle elle s'inscrit et son angle d'attaque, micro ou macro. Suivant le premier critère, trois écoles de pensée dominantes sur les causes et les origines de l'informalité peuvent être distinguées (Roubaud, ; Chen et al ., ; Cimoli et al ., ; Bacchetta et al ., 2009): l'école dualiste (Lewis, ; Harris et Todaro, ), l'école structuraliste (Moser, ; Portes et al ., ) et l'école légaliste (De Soto, ). Cependant, deux cadres d'analyse principaux permettent de mettre au premier plan l'hypothèse d'un choix volontaire des agents visant à contourner les réglementations étatiques: l'approche légaliste et l'approche de réduction de la pauvreté (Treillet, ).…”

Section: Le Paradigme Néo‐institutionnaliste Du Rôle De L'informalitéunclassified

L'informalité: un nouveau paradigme de développement et d'intégration « par le bas » en Afrique

Njifen¹

2014

African Development Review

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Après plusieurs décennies d'expériences d'intégration régionale en Afrique, le bilan du modèle linéaire d'intégration adopté par les Communautés Economiques Régionales est mitigé. Ce processus d'intégration orchestré par le haut c'est-à-dire par les règles et les institutions ne permet pas d'optimiser les résultats de l'intégration en matière de développement économique. Face à cette faible performance, un autre modèle d'intégration parallèle allait s'imposer: l'intégration par le bas c'est-à-dire par les peuples; laquelle se réalise en marge des institutions grâce à la volonté manifeste des groupes sociaux qui sortent des cadres réglementaires pour développer des réseaux marchands transfrontaliers. L'informalité devient une alternative capable d'engendrer un développement inclusif et dont sa formalisation peut contribuer à la transformation structurelle de l'Afrique. L'objectif de cet article est de susciter la réflexion sur le rôle que peut jouer l'informalité dans le processus de l'intégration en Afrique. Partant du principe d'individualisme méthodologique, nous montrons que l'informalité constitue un vecteur de développement local et d'intégration par le bas en Afrique. Les Etats doivent procéder à une refondation de l'intégration en Afrique et faire du secteur informel un véritable partenaire de la politique de développement et d'intégration en Afrique.

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A low-growth model: Informality as a structural constraint

Cited by 30 publications

References 32 publications

A matching model of endogenous growth and underground firms

A matching model of endogenous growth and underground firms

Income distribution, productive structure and growth in South America

L'informalité: un nouveau paradigme de développement et d'intégration « par le bas » en Afrique

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