Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83243 
Year of Publication: 
2005
Series/Report no.: 
Discussion Paper No. 2005/7
Publisher: 
Turkish Economic Association, Ankara
Abstract: 
This paper elaborates on the evolution of the informal sector vis-à-vis the evolution of agricultural and formal sectors in a stylized developing country economy in process of growth. The analytical contribution of this essay extends the Ramsey theory of growth into a framework that includes an informal sector, and household preferences that display Engel effects in agricultural and informally produced goods. Besides showing that the informal sector’s importance diminishes over time as the economy grows, the results from the model demonstrate that a country can successfully reduce its informal employment by reducing tax on employment in the formal sector.
Subjects: 
Informal Sector
Economic Growth
Employment tax
Middle East
Turkey
Document Type: 
Working Paper

Files in This Item:
File
Size
327.27 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.