Carrera 7 No. 79B-15 Of. 401
Institutional Affiliations: ECON ESTUDIO and Universidad de los Andes
Information about this author at RePEc
NBER Working Papers and Publications
|June 2015||On the Effect of the Costs of Operating Formally: New Experimental Evidence|
with Sebastian Galiani, Camila Navajas: w21292
This paper analyzes the impact of the elimination of the initial fixed costs of registration on the decision of informal firms to operate formally in Bogotá, Colombia. The Chamber of Commerce of Bogotá (CCB) conducts workshops for prospective formal-sector entrants and arranges personalized meetings for them with CCB agents. The CCB’s decision to significantly reduce the transaction costs of registration and the entry into force of Act No. 1429 of 2010, which eliminated the costs of the initial procedure for registering as a formal enterprise and provided exemptions from relevant taxes during the first years after formalization, provided us with an ideal experiment for studying how the elimination of the initial fixed costs of formalization would influence firms’ decision to operate formal...
Published: Galiani, Sebastian & Meléndez, Marcela & Ahumada, Camila Navajas, 2017. "On the effect of the costs of operating formally: New experimental evidence," Labour Economics, Elsevier, vol. 45(C), pages 143-157. citation courtesy of