What is it about?
Electricity consumption is also used to gauge macroeconomic informality that varies greatly across regions with no geographic advantage in reducing it. Unlike prior research, persistent regional technical inefficiency is found that has little impact on reducing informality but may help reducing corruption.
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Why is it important?
This work allows us to understand how to reduce the technical inefficiency of Mexico and its regions.
Perspectives
I hope that regional policies supporting returns to human capital accumulation being better kept by workers while technical inefficiency is reduced are recommended.
Dr. Vicente German-Soto
Autonomous University of Coahuila
Read the Original
This page is a summary of: Regional industrial informality and efficiency in Mexico, 1990–2013, Journal of Policy Modeling, September 2017, Elsevier,
DOI: 10.1016/j.jpolmod.2017.07.002.
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