A Classical Theory of the Informal Sector*

Gibson, Bill; Kelley, Bruce C.

doi:10.1111/j.1467-9957.1994.tb00647.x

Cited by 29 publications

(19 citation statements)

References 7 publications

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“…With less informal competition, output in the formal sector increases and with it the rate of profit. See Gibson and Kelley (1994) for more details. 13 By assumption, LBD applies only to formal sector employment.…”

Section: Human Capital Accumulationmentioning

confidence: 99%

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The transition to a globalized economy: Poverty, human capital and the informal sector in a structuralist CGE model

Gibson

2005

Journal of Development Economics

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Section: Human Capital Accumulationmentioning

confidence: 99%

“…SeeGibson and Kelley (1994) for a discussion of the theoretical approach employed here. For an interesting neoclassical CGE with an informal sector for Mexico, seeMaechler and Roland-Holst (1995) and for a structuralist model for South Africa, seeSchaefer (2002).…”

mentioning

confidence: 99%

The transition to a globalized economy: Poverty, human capital and the informal sector in a structuralist CGE model

Gibson

2005

Journal of Development Economics

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“…Sinha (2005) Sinha and Adam (2000), Gibson and Kelley (1994) and Portes et al (1989) analyse the informal sector in a macroeconomic framework using a computable general equilibrium (CGE) structure. CGE modelling, also referred as AGE (Applied General Equilibrium) models, use actual data to estimate the impact of mainly technological and policy changes within a database consisting of input-output table, elasticities, etc.…”

Section: Informality In Computable General Equilibrium Modelsmentioning

confidence: 99%

“…they model the reactions of the economy at one point in time). Sinha (2005) provides a 'mini' survey on CGE models including an informal sector and differentiates CGE models focusing on informality in product markets Gibson and Kelley (1994) and CGE models based on segmented labour market theories (e.g., Portes et al (1989)) where informality is defined in respect to the factor markets.…”

Section: Informality In Computable General Equilibrium Modelsmentioning

confidence: 99%

Informal Labour and Credit Markets: A Survey

Levine

Lotti²,

Batini³

et al. 2010

IMF Working Papers

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This paper reviews the literature on the informal economy, focusing first on empirical findings and then on existing approaches to modelling informality within both partial and general equilibrium environments. We concentrate on labour and credit markets, since these tend to be most affected by informality. The phenomenon is particularly important in emerging and other developing economies, given their high degrees of informal labour and financial services and the implications these have for the effectiveness of macroeconomic policy. We emphasize the need for dynamic general equilibrium (DGE) and ultimately dynamic stochastic general equilibrium (DSGE) models for a full understanding of the costs, benefits and policy implications of informality. The survey shows that the literature on informality is quite patchy, and that there are several unexplored areas left for research.JEL Classification: J65, E24, E26, E32

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“…On the other hand, with functional informality profit driven marginal productivity is inconsequential. Output is a means of survival bringing into question productivity, quality and quantity of production (Gibson & Kelley, 1994) [24] alike the structuralist approach to informality (Castells & Portes, 1989) [11]. Which it is believed is an ill effect of capitalism manipulated in lure of capitalist will.…”

Section: Introductionmentioning

confidence: 99%