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| Segundo Camino-Mogro, Juan Manuel Dominguez and María Auxiliadora Guzman |
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| ''From lower levels of formality to a formal firm in Ecuador: Short-run evidence'' |
| ( 2025, Vol. 45 No.1 ) |
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| This paper evaluates the impact of an entry deregulation on the change from a less formal business to a higher level of formality of a business in Ecuador by analyzing a recent reform called Sociedad por Acciones Simplificadas (SAS). We use novel and under-explore administrative data sets and apply a difference-in-difference approach comparing the physical (in-person) to the electronic firm creation schemes, before and after the policy implementation. We find that the reform does not increase the probability of changing from a less formal business to the highest level of formalization in the short-run. |
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| Keywords: Bureaucracy, entry regulation, informality |
JEL: H3 - Fiscal Policies and Behavior of Economic Agents: General
D7 - Analysis of Collective Decision-Making: General |
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| Manuscript Received : Nov 05 2023 | | Manuscript Accepted : Mar 30 2025 |
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