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Cover title ; Bibliography: p. 56-59 ; Mode of access: Internet. ; Environ Dsgn JK5225 1970.A485: 701 Depository Program

I develop a dynamic model of forward-looking entrepreneurs, who decide whether to operate in the formal economy or informal economy and choose how much to invest in their businesses, taking government policy as given. The government has access to two policy tools: taxes on formal business activity and enforcement (or policing) discouraging informality. The main focus of the paper is on transitional dynamics under different initial wealth levels. Whether an initially small business will be trapped in the informal economy and remain small forever or grow quickly and become a large formal business depends on tax and enforcement policies. High tax rates accompanied by loose enforcement – which is mostly the case in less-developed countries (LDCs) – induce tax avoidance, discourage investment in formal businesses, and drive the entrepreneurial activity toward the informal sector even though the initial wealth level is high. Lowering taxes on formal activity joined with strict enforcement can help reducing the magnitude of poverty traps in LDCs.

"November 12, 2008." ; "Printed for the use of the Committee on Homeland Security and Governmental Affairs." ; Mode of access: Internet.

The main objective is to measure the elasticity in the response of relative wages by education to relative supplies of educated labour"--P. [201]. ; ISI; IFPRI3 ; PR

This paper analyses the hypothesis that export volatility depends upon the level of industrialization of the exporting country and the level product cycle for exporting product. It also discusses the significance of the empirical findings, their importance in explaining why government policies have increased export instability in many developing countries, and their policy implications. The volatility of export growth for products is much higher for the developing than for the industrial countries. Finally, some research has found evidence that diversification encourages competition and the introduction of new technology. Results of the study could suggest that diversification may proceed along two basic patterns, and that, for developing countries, different effects on overall volatility could be associated with each pattern.