- Place of Publication: Ithaca, New York
- Publisher: Cornell University
Charles H. Dyson School of Applied Economics and Management, Working Paper 2014-06
Abstract: The object of this paper is to complement the “politics trumps economics” theme of this volume by exploring how policy mindsets influence policy making, and how they tend to persist even in the face of counter trends in reality. I first of all develop the history of economic thought and economic policy making on informality, to establish the route through which we came to be where we are today. I then present the main global trends on informality and discuss some possible explanations for them. In light of this discussion, I then turn to policy and most importantly, how to change the mindset of those who formulate and implement policy on informality.