Ítem
Acceso Abierto

MSMEs and the Cost of Using Capital

Mostrar el registro sencillo de la publicación
dc.creatorFernández Mejía, Cristina
dc.date.accessioned2025-02-07T14:34:23Z
dc.date.available2025-02-07T14:34:23Z
dc.date.created2025-01-30
dc.date.issued2025-02-05
dc.description.abstractMicro-business populate most of the demography of firms in developing countries. However very often this firms are discouraged to hire skilled workers and to accumulate capital, and therefore to be productive. The lack of incentives to accumulate capital occurs not only because interest rates are decreasing in capital, but also because they are subject to tax deductions that cannot be used by firms too small to be subject to taxes. This paper estimates a general equilibrium model that includes an endogenous extensive and intensive margin of informality, a tax structure that considers waivers to small firms and deductions to larger firms, capital and a cost of using it that follows a logistic function behavior, resembling what is found in the data. The model is calibrated for the case of the manufacturing sector in Colombia. Simulations suggest that policies oriented to increase the use of capital in one group, without any more policies to reduce the average cost of using capital, imply an increase of the cost of using capital for other groups. Therefore, policies to reduce the informal distortion of using capital can increase formal firm’s productivity but reducing the size of the formal sector, thus harming overall productivity. On the other hand, policies oriented to reduce the size distortion of using capital can increase formality maintaining output and productivity relatively stable, because both tales of the productivity distribution are equally affected.
dc.format.extent19 pp
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.48713/10336_44947
dc.identifier.urihttps://repository.urosario.edu.co/handle/10336/44947
dc.language.isoeng
dc.publisherUniversidad del Rosario
dc.publisher.departmentFacultad de Economía
dc.rightsAttribution-NonCommercial-ShareAlike 4.0 International*
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto Completo)
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/*
dc.source.bibliographicCitationAlvarez, J., & Ruane, M. C. (2019). Informality and Aggregate Productivity: The Case of Mexico. International Monetary Fund.
dc.source.bibliographicCitationChisari, O. O., Romero, C. A., & Mart´ınez, J. P. V. (2016). Economy-Wide Effects of Improving Small Firms Access to Capital Markets: An Applied General Equilibrium Assessment. Revista de Analisis Econ ´ omico–Economic Analysis Review ´ , 31(1), 15–36.
dc.source.bibliographicCitationChowdhury, M. J. A. (2009). Microcredit, Micro-enterprises, and Self-Employment of Women: Experience from the Grameen Bank in Bangladesh (Vol. 209; Working Paper). Dhaka, Bangladesh: Center for Microfinance and Development
dc.source.bibliographicCitationDe Paula, A., & Scheinkman, J. A. (2011). The Informal Sector: An Equilibrium Model and Some Empirical Evidence from Brazil. Review of Income and Wealth, 57, S8–S26.
dc.source.bibliographicCitationD’Erasmo, P. N., & Boedo, H. J. M. (2012). Financial Structure, Informality and Development. Journal of Monetary Economics, 59(3), 286–302.
dc.source.bibliographicCitationErosa, A., Fuster, L., & Martinez, T. R. (2023). Public Financing with Financial Frictions and Underground Economy. Journal of Monetary Economics, 135, 20–36.
dc.source.bibliographicCitationEstrada, D. A., & Hernandez Rubio, A. (2019). ´ Situacion Actual e Impacto del Microcr ´ edito en ´ Colombia. Banco de la Republica de Colombia. Retrieved from ´ https://repositorio .banrep.gov.co/handle/20.500.12134/9723
dc.source.bibliographicCitationFernandez, C. (2023a). The impact of tax asymmetries on labor and business informality. ´ Forthcomming.
dc.source.bibliographicCitationFernandez, C. (2023b). MSMEs and informality: A new employer–employee database for Colom- ´ bia. Forthcomming.
dc.source.bibliographicCitationGranda, C., & Hamann, F. (2015). Informality, Saving and Wealth Inequality in Colombia (Working Paper No. 575). Washington, D.C.: Inter-American Development Bank
dc.source.bibliographicCitationHamann-Salcedo, F. A., & Mej´ıa, L. F. (2013). Formalizando la Informalidad Empresarial en Colombia (Vol. Cap´ıtulo 10. Pag.:399-427). Banco de la Rep ´ ublica de Colombia.
dc.source.bibliographicCitationLoayza, N. V. (2016). Informality in the Process of Development and Growth. The World Economy, 39(12), 1856–1916
dc.source.bibliographicCitationOECD. (2020). Financing SMEs and Entrepreneurs 2020: An OECD Scoreboard. OECD Publishing
dc.source.bibliographicCitationOECD. (2022). Financing SMEs and Entrepreneurs 202022: An OECD Scoreboard. OECD Publishing
dc.source.bibliographicCitationRebolledo Abanto, P. A., & Soto Chavez, R. (2004). Estructura del Mercado de Cr ´ editos y ´ Tasas de Interes: Una Aproximaci ´ on al Segmento de las Microfinanzas. ´ Revista Estudios Economicos ´ (11).
dc.source.bibliographicCitationUlyssea, G. (2018). Firms, Informality, and Development: Theory and Evidence from Brazil. American Economic Review, 108(8), 2015–2047.
dc.source.bibliographicCitationVeyrune, M. R. M., Della Valle, G., & Guo, S. (2018). Relationship Between Short-Term Interest Rates and Excess Reserves: A Logistic Approach. International Monetary Fund.
dc.source.instnameinstname:Universidad del Rosario
dc.source.reponamereponame:Repositorio Institucional EdocUR
dc.subject.jelC68
dc.subject.jelD24
dc.subject.jelD58
dc.subject.jelJ46
dc.subject.jelL26
dc.subject.jelL60
dc.subject.keywordInformality
dc.subject.keywordMicrobusiness
dc.subject.keywordBusiness informality
dc.subject.keywordCost of using capital
dc.subject.keywordInterest rates
dc.subject.keywordMicrocredit
dc.titleMSMEs and the Cost of Using Capital
dc.typeworkingPaper
dc.type.hasVersioninfo:eu-repo/semantics/draft
dc.type.spaDocumento de trabajo
Archivos
Bloque original
Mostrando1 - 1 de 1
Miniatura
Nombre:
dt322R.pdf
Tamaño:
6.55 MB
Formato:
Adobe Portable Document Format
Descripción:
Descargar
Colecciones
Serie Documentos de Trabajo. Facultad de Economía