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  • 1
    Language: English
    Pages: Online-Ressource (27 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Using Administrative Data to Evaluate Municipal Reforms
    Abstract: Efforts to make it easier for firms to register formally are the most common form of business regulatory reform over the past decade. While there is evidence that large reforms have resulted in some increases in registration rates, recent experimental evidence suggests very few informal firms choose to register when given information about how to do so. This raises the question of whether it is productive for governments to continue to extend simplification efforts to all firms, especially those in more remote areas where many of the benefits of registering may be reduced. This study uses administrative data to evaluate the impact of Minas Fácil Expresso, a program in the state of Minas Gerais, Brazil, which attempted to expand a business start-up simplification program to more remote municipalities. Using difference-in-differences with 56 months of registration data for 822 municipalities, the analysis finds introducing these units actually led to a reduction in registration rates, and no change in tax revenues. The paper uses this evaluation to illustrate the design choices and issues involved in using administrative data to evaluate reforms, with the goal of also providing a template that can be used for evaluating similar reforms elsewhere
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 2
    Language: English
    Pages: 1 Online-Ressource (43 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Bruhn, Miriam Can Grants to Consortia Spur Innovation and Science-Industry Collaboration? Regression-Discontinuity Evidence from Poland
    Abstract: This paper uses a regression discontinuity design to study the effect of Poland's In-Tech program on innovation activities. The analysis focuses on a component of the program that provides grants to projects that are carried out by consortia of firms and research entities. Data from a 2016 follow-up survey of applicants to the 2012 and 2013 calls for proposals show that In-Tech largely funds projects that would not otherwise get funded by other agencies or by the consortia themselves, increasing the probability of a project being completed by almost 60 percentage points. The results also show that the program leads to more science-industry collaboration, and increases the probability of applying for a patent related to the proposed project, as well as the probability of publishing a research paper related to the project. The analysis also finds early effects on commercialization of products related to the proposed project, although these products currently still make up a small share of firm's sales
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 3
    Language: English
    Pages: Online-Ressource
    Edition: Online-Ausg. World Bank E-Library Archive Also available in print
    Series Statement: Policy research working paper 4752
    Parallel Title: Bruhn, Miriam In pursuit of balance
    Abstract: "Randomized experiments are increasingly used in development economics, with researchers now facing the question of not just whether to randomize, but how to do so. Pure random assignment guarantees that the treatment and control groups will have identical characteristics on average, but in any particular random allocation, the two groups will differ along some dimensions. Methods used to pursue greater balance include stratification, pair-wise matching, and re-randomization. This paper presents new evidence on the randomization methods used in existing randomized experiments, and carries out simulations in order to provide guidance for researchers. Three main results emerge. First, many researchers are not controlling for the method of randomization in their analysis. The authors show this leads to tests with incorrect size, and can result in lower power than if a pure random draw was used. Second, they find that in samples of 300 or more, the different randomization methods perform similarly in terms of achieving balance on many future outcomes of interest. However, for very persistent outcome variables and in smaller sample sizes, pair-wise matching and stratification perform best. Third, the analysis suggests that on balance the re-randomization methods common in practice are less desirable than other methods, such as matching. "--World Bank web site
    Note: Includes bibliographical references , Title from PDF file as viewed on 5/12/2009 , Also available in print.
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  • 4
    Language: English
    Pages: Online-Ressource (43 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: De Andrade, Gustavo Henrique A Helping Hand or the Long Arm of the Law?
    Abstract: Many governments have spent much of the past decade trying to extend a helping hand to informal businesses by making it easier and cheaper for them to formalize. Much less effort has been devoted to raising the costs of remaining informal, through increasing enforcement of existing regulations. This paper reports on a field experiment conducted in Belo Horizonte, Brazil, in order to test which government actions work in getting informal firms to register. Firms were randomized to a control group or one of four treatment groups: the first received information about how to formalize; the second received this information and free registration costs along with the use of an accountant for a year; the third group was assigned to receive an enforcement visit from a municipal inspector; while the fourth group was assigned to have a neighboring firm receive an enforcement visit to see if enforcement has spillovers. The analysis finds zero or negative impacts of information and free cost treatments, and a significant but small increase in formalization from inspections. Estimates of the impact of actually receiving an inspection give a 21 to 27 percentage point increase in the likelihood of formalizing. The results show most informal firms will not formalize unless forced to do so, suggesting formality offers little private benefit to them. But the tax revenue benefits to the government of bringing firms of this size into the formal system more than offset the costs of inspections
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 5
    Language: English
    Pages: Online-Ressource (18 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Entry Regulation and Formalization of Microenterprises in Developing Countries
    Abstract: The majority of microenterprises in most developing countries remain informal despite more than a decade of reforms aimed at making it easier and cheaper for them to formalize. This paper summarizes the evidence on the effects of entry reforms and related policy actions to promote firm formalization. Most of these policies result only in a modest increase in the number of formal firms, if at all. Less is known about the impact of other forms of business regulations on the performance of low-scale enterprises. Most informal firms appear not to benefit on net from formalizing, so ease of formalization alone will not lead to most of them formalizing. Increased enforcement of rules can increase formality. Although there is a fiscal benefit of doing this with larger informal firms, it is unclear whether there is a public rationale for trying to formalize subsistence enterprises
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 6
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Bruhn, Miriam Why is Voluntary Financial Education so Unpopular?
    Abstract: Take-up of voluntary financial education programs is typically extremely low. This paper reports on randomized experiments around a large financial literacy course offered in Mexico City to understand the reasons for low take-up, and to measure the impact of financial education. It documents that the general public displays little interest in such courses and that participation is low even among individuals who express interest in financial education. The paper experimentally investigates barriers to take-up, and finds no impact of relaxing reputational or logistical constraints and no evidence that time inconsistency is the reason for limited participation. Even relatively sizeable monetary incentives get less than 40 percent of interested individuals invited to training to attend. Using a randomized encouragement design, the authors measure the impact of the course on financial knowledge and behavior. Attending training results in a 9 percentage point increase in financial knowledge and a 9 percentage point increase in saving outcomes, but no impact on borrowing behavior. Administrative data indicate that the savings impact is relatively short-lived. The results suggest people are making optimal choices not to attend financial education courses, and point to the limits of using general purpose courses to improve financial behavior for the general population
    URL: Volltext  (Deutschlandweit zugänglich)
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