nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2018‒11‒19
four papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria By Frimmel, Wolfgang; Halla, Martin; Paetzold, Joerg
  2. The Importance of household business and informal sector for inclusive growth in Vietnam By Laure Pasquier-Doumer; Xavier Oudin; Nguyen Thang
  3. Trust & Informality in the Indian Credit Market: A Snapshot from Recent Data By Atanu Sengupta, Atanu Sengupta; De, Sanjoy
  4. The enabling environment for informal food traders in Nigeria’s secondary cities By Resnick, Danielle; Sivasubramanian, Bhavna; Idiong, Idiong Christopher; Ojo, Michael Akindele; Tanko, Likita

  1. By: Frimmel, Wolfgang (JKU Linz); Halla, Martin (JKU Linz); Paetzold, Joerg (University of Salzburg)
    Abstract: Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria. This allowance is designed as a step function of the distance between the residence and the workplace, creating sharp discontinuities at each bracket threshold. It turns out that the distance to the next higher bracket is a strong determinant of compliance. The match of different administrative data sources allows us to observe actual compliance behavior with little error at the individual level across two generations. To identify the intergenerational causal effect in tax evasion behavior, we use the paternal distance to next higher bracket as an instrumental variable for paternal compliance. We find that paternal non-compliance increases children’s non-compliance by about 23 percent.
    Keywords: Tax evasion; tax morale; intergenerational correlation; intergenerational causal effect
    JEL: A13 D14 H24 H26 J62
    Date: 2017–01–19
  2. By: Laure Pasquier-Doumer (LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris-Dauphine, IRD - Institut de Recherche pour le Développement); Xavier Oudin (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, DIAL - Développement, institutions et analyses de long terme, IRD - Institut de Recherche pour le Développement); Nguyen Thang (IRD - Institut de Recherche pour le Développement)
    Abstract: This book draws on an original and innovative data collection to provide new evidence on household businesses and the informal sector in Vietnam. This 2014/15 HB&IS survey conducted in late 2014 and early 2015 is the first national survey ever on this sector in Vietnam with full coverage of its different components. The purpose of this book is threefold. First, it aims at filling the knowledge gap as to the role of household businesses and the informal sector in the Vietnamese economy. Second, it provides new insights for policymakers to unlock household business potential by identifying the factors blocking their performance and productivity. Thirdly, it identifies the sources of worker vulnerability in household businesses and the informal sector to inform the design of a suitable policy to tackle this vulnerability.
    Keywords: inclusive growth,Informal sector,Vietnam
    Date: 2017
  3. By: Atanu Sengupta, Atanu Sengupta; De, Sanjoy
    Abstract: Credit is very important in the lives of the poor people. The benefits of credit are manifold. Even after more than six and a half decade since independence, the extent and important of informal credit have not diminished to a great degree in India. This paper aims at to understand the significance of personalized relations in the working of the informal credit market with the help of the All Indian Debt and Investment survey data. .Our analysis shows that there is distinct compartmentalization of the Indian credit market with respect to the disbursement of loan from various credit agencies. Each of these category of credit agencies has some definite target group to cater to. Apart from this clear division of loaning pattern, the importance of trust, personalized knowledge and mutual co-operation in the informal credit market has also been observed.
    Keywords: Credit, Informal credit, Trust, Informality
    JEL: E26 G21 L14
    Date: 2018–10–21
  4. By: Resnick, Danielle; Sivasubramanian, Bhavna; Idiong, Idiong Christopher; Ojo, Michael Akindele; Tanko, Likita
    Abstract: Informal vendors are a critical source of food security for urban residents in African cities. However, the livelihoods of these traders and the governance constraints they encounter are not well-understood outside of the region’s capital and primate cities. This study focuses on two distinct secondary cities in Nigeria, Calabar in the South-South geopolitical zone of the country and Minna in the Middle Belt region. Local and state officials in each city were interviewed on the legal, institutional, and oversight functions they provide within the informal food sector. This was complemented with a survey of 1,097 traders across the two cities to assess their demographic characteristics, contributions to local food security, key challenges they face for profitability, engagement with government actors, and degree of access to services in the markets.
    Keywords: NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; informal sector; urban areas; street vendors; street foods; food security; food safety; food policies; secondary cities
    Date: 2018

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