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on Informal and Underground Economics |
| By: | Sugata Marjit; Koushik Hati; Lei Yang |
| Abstract: | This paper explores whether tax compliance would be affected if the tax payers are “status” seekers. If relative income is a symbol of relative status in a society, status concerned individuals would evade paying taxes more relative to the case where status is not a concern. However, such an outcome would not hold if the symbol of relative status is relative consumption of the “status” good and not relative income. We generalize the scenario by introducing a measure of relative status which depends on both relative income and consumption of the status good. |
| Keywords: | status-seeking behavior, tax evasion, relative income, conspicuous consumption, Inequality |
| JEL: | H26 D31 D91 O15 H21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12193 |
| By: | Tomic, Slobodan; Pavlovic, Dusan |
| Abstract: | This article examines how competitive authoritarian regimes reshape state administration through informal, extralegal structures that bypass formal institutional frameworks. While prior research highlights how regimes centralize power by restructuring bureaucracies and appointing loyalists, the formal institutional framework typically remains the main conduit through which partisan control and management of state administration are exercised. This article presents a distinct model of partisan control under competitive authoritarianism — showing how these strategies may be reinforced, or even replaced, by party-run parallel networks that redirect authority flows. Drawing on the case of Serbia under Vučić, it documents a “para-state” shadow governance system that displaces formal command. This model enables centralized, discretionary control across the entire public sector while shielding elites from accountability. Conceptually, the article argues that Serbia’s model blurs the line between competitive authoritarianism and totalitarian rule. |
| Date: | 2025–10–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ympvd_v2 |
| By: | Milon Bhattacharya |
| Abstract: | Quick commerce (q-commerce) is one of the fastest growing sectors in India. It provides informal employment to approximately 4, 50, 000 workers, and it is estimated to become a USD 200 Billion industry by 2026. A significant portion of this industry deals with perishable goods. (e.g. milk, dosa batter etc.) These are food items which are consumed relatively fresh by the consumers and therefore their order volume is high and repetitive even when the average basket size is relatively small. The fundamental challenge for the retailer is that, increasing selling price would hamper sales and would lead to unsold inventory. On the other hand setting a price less, would lead to forgoing of potential revenue. This paper attempts to propose a mathematical model which formalizes this dilemma. The problem statement is not only important for improving the unit economics of the perennially loss making quick commerce firms, but also would lead to a trickle-down effect in improving the conditions of the gig workers as observed in [4]. The sections below describe the mathematical formulation. The results from the simulation would be published in a follow-up study. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.11360 |
| By: | Abigail Stocker |
| Abstract: | Maternity benefits are targeted at improving both children's and mothers' outcomes, but many women in the informal sector are not eligible for traditional maternity leave programs. This paper investigates the impact of IGMSY, a unique maternity benefits program in India, on early childhood education. The program launched in 2011, was piloted in 52 out of India's 640 districts, and provided cash transfers to women for their first and second live births regardless of employment status. Using a difference-in-differences approach across districts and cohorts, I find that the program increased preschool enrollment by 9 percentage points but did not increase enrollment, reading, or math competency in primary school. The effects on enrollment are strongest for children from poorer households, likely due to both improvements in health-related outcomes and increases in income. |
| Keywords: | maternity benefits; cash transfer; education; preschool; mothers |
| JEL: | I25 I38 J13 |
| Date: | 2025–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:cwm:wpaper:173 |
| By: | Adam Storeygard |
| Abstract: | This brief survey reviews recent work on transportation in poor and middle-income countries. After reviewing a few key global facts and taking stock of the data available, it focuses on eight key themes that are emphasized in this literature relative to work on transportation in rich countries. In urban areas, these are private/informal transit, interactions with other informal markets, gender, bus rapid transit, and quantity-based congestion policy. Elsewhere, they are the legacy of colonialism, rural roads, and potential negative effects of improved transportation infrastructure. |
| JEL: | O10 R40 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34354 |