On the effect of the costs of operating formally : new experimental evidence
Fil: Navajas Ahumada, Camila Eugenia
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| Formato: | Tesis Tesis de maestría updatedVersion |
| Lenguaje: | Inglés |
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Universidad de San Andrés. Departamento de Economía
11/9
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| Acceso en línea: | http://hdl.handle.net/10908/11904 |
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I37-R143-10908-11904 |
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I37-R143-10908-119042025-01-29T16:35:23Z On the effect of the costs of operating formally : new experimental evidence Navajas Ahumada, Camila Eugenia Galiani, Sebastián Meléndez, Marcela Galiani, Sebastián Informal sector (Economics) -- Colombia -- Bogotá -- Econometric models. Business enterprises -- Colombia -- Bogotá -- Econometric models. Sector informal (Economía) -- Colombia -- Bogotá -- Modelos econométricos. Empresas comerciales -- Colombia -- Bogotá -- Modelos econométricos. Fil: Navajas Ahumada, Camila Eugenia Galiani, Sebastián Meléndez, Marcela. Universidad de San Andrés. Departamento de Economía; Argentina. 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 formally or not. We obtained two important results. First, while a workshop treatment had no effect on firms’ formalization decisions, meetings at the firm with CCB agents raised the likelihood that a business would begin to operate formally by 5.5 percentage points for all the firms that were invited, at random, to participate in this arm of the intervention and by 32 percentage points for the firms that accepted the invitation. Second, the effect on the treatment firms did not persist over time. After a year of formal operation, it disappeared. These results indicate that substantial reductions in the fixed costs of operating formally are not effective in formalization choices, since such reductions had no lasting effect on formalization decisions. 11/9/2016 14:42Z 11/9/2016 14:42Z 2015-05-26 Tesis info:eu-repo/semantics/masterThesis info:ar-repo/semantics/tesis de maestría info:eu-repo/semantics/updatedVersion Navajas Ahumada, C. E., Galiani, S. y Meléndez, M. (2015). On the effect of the costs of operating formally : new experimental evidence. [Tesis de maestría, Universidad de San Andrés. Departamento de Economía]. Repositorio Digital San Andrés. http://hdl.handle.net/10908/11904 Tesis M. Eco. 90 http://hdl.handle.net/10908/11904 eng info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf application/pdf Universidad de San Andrés. Departamento de Economía |
| institution |
Universidad de San Andrés |
| institution_str |
I-37 |
| repository_str |
R-143 |
| collection |
Repositorio Digital - Universidad de San Andrés (UdeSa) |
| language |
Inglés |
| topic |
Informal sector (Economics) -- Colombia -- Bogotá -- Econometric models. Business enterprises -- Colombia -- Bogotá -- Econometric models. Sector informal (Economía) -- Colombia -- Bogotá -- Modelos econométricos. Empresas comerciales -- Colombia -- Bogotá -- Modelos econométricos. |
| spellingShingle |
Informal sector (Economics) -- Colombia -- Bogotá -- Econometric models. Business enterprises -- Colombia -- Bogotá -- Econometric models. Sector informal (Economía) -- Colombia -- Bogotá -- Modelos econométricos. Empresas comerciales -- Colombia -- Bogotá -- Modelos econométricos. Navajas Ahumada, Camila Eugenia Galiani, Sebastián Meléndez, Marcela On the effect of the costs of operating formally : new experimental evidence |
| topic_facet |
Informal sector (Economics) -- Colombia -- Bogotá -- Econometric models. Business enterprises -- Colombia -- Bogotá -- Econometric models. Sector informal (Economía) -- Colombia -- Bogotá -- Modelos econométricos. Empresas comerciales -- Colombia -- Bogotá -- Modelos econométricos. |
| description |
Fil: Navajas Ahumada, Camila Eugenia |
| author2 |
Galiani, Sebastián |
| author_facet |
Galiani, Sebastián Navajas Ahumada, Camila Eugenia Galiani, Sebastián Meléndez, Marcela |
| format |
Tesis Tesis de maestría Tesis de maestría updatedVersion |
| author |
Navajas Ahumada, Camila Eugenia Galiani, Sebastián Meléndez, Marcela |
| author_sort |
Navajas Ahumada, Camila Eugenia |
| title |
On the effect of the costs of operating formally : new experimental evidence |
| title_short |
On the effect of the costs of operating formally : new experimental evidence |
| title_full |
On the effect of the costs of operating formally : new experimental evidence |
| title_fullStr |
On the effect of the costs of operating formally : new experimental evidence |
| title_full_unstemmed |
On the effect of the costs of operating formally : new experimental evidence |
| title_sort |
on the effect of the costs of operating formally : new experimental evidence |
| publisher |
Universidad de San Andrés. Departamento de Economía |
| publishDate |
11/9 |
| url |
http://hdl.handle.net/10908/11904 |
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