Advanced Search
MyIDEAS: Login to save this article or follow this journal

A Classical Theory of the Informal Sector

Contents:

Author Info

  • Gibson, Bill
  • Kelley, Bruce
Registered author(s):

    Abstract

    A major focus of the debate on the informal sector is whether this sector constitutes a 'seedbed of capitalist growth' or simply a reserve army of unemployed. This paper develops a classical model where informal processes may or may not turn formal in the long run. It is further shown that if the state taxes capitalists in order to maintain informal sector incomes, the surplus is likely to fall as formal sector output grows. Thus, the authors conclude that while the informal sector does not necessarily lead to capitalist development, it may serve as a social buffer in its absence. Copyright 1994 by Blackwell Publishers Ltd and The Victoria University of Manchester

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.

    Volume (Year): 62 (1994)
    Issue (Month): 1 (March)
    Pages: 81-96

    as in new window
    Handle: RePEc:bla:manch2:v:62:y:1994:i:1:p:81-96

    Contact details of provider:
    Postal: Manchester M13 9PL
    Phone: (0)161 275 4868
    Fax: (0)161 275 4812
    Web page: http://www.socialsciences.manchester.ac.uk/disciplines/economics/
    More information through EDIRC

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Gibson, Bill, 2005. "The transition to a globalized economy: Poverty, human capital and the informal sector in a structuralist CGE model," Journal of Development Economics, Elsevier, vol. 78(1), pages 60-94, October.
    2. Albu, Lucian-Liviu, 2003. "Underground economy modelling: simple models with complicated dynamics," MPRA Paper 12447, University Library of Munich, Germany.
    3. Kendall K. Schaefer, 2003. "Capacity Utilization, Income Distribution, and the Urban Informal Sector: An Open-Economy Model," Working Papers wp35, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany.
    5. Albu, Lucian-Liviu & Nicolae, Mariana, 2003. "Use of households survey data to estimate the size of the informal economy in Romania," MPRA Paper 14286, University Library of Munich, Germany.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bla:manch2:v:62:y:1994:i:1:p:81-96. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.