Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso

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 experimen...

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Main Authors: Bruhn, Miriam, McKenzie, David
Format: Publications & Research
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/02/17369910/using-administrative-data-evaluate-municipal-reforms-evaluation-impact-minas-facil-expresso
http://hdl.handle.net/10986/21477
id okr-10986-21477
recordtype oai_dc
spelling okr-10986-214772021-04-23T14:04:02Z Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso Bruhn, Miriam McKenzie, David BUSINESS TAX REVENUE BUSINESS TAXES CHAMBER OF COMMERCE CITIES CORPORATION DEBT ENTREPRENEURSHIP FIRM PROFITABILITY INDIVIDUALS LARGE CITIES LICENSES LIMITED LIMITED LIABILITY LIMITED LIABILITY COMPANIES LOCAL AUTHORITIES MUNICIPAL MUNICIPAL LAW MUNICIPAL LEVEL MUNICIPAL TAXES MUNICIPALITIES MUNICIPALITY PROPERTY TAXES REGULATORY REFORM STATE GOVERNMENT TAX BASE TAX COLLECTION TAX COLLECTIONS TAX REVENUES 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 Facil 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. 2015-02-23T21:43:33Z 2015-02-23T21:43:33Z 2013-02 http://documents.worldbank.org/curated/en/2013/02/17369910/using-administrative-data-evaluate-municipal-reforms-evaluation-impact-minas-facil-expresso http://hdl.handle.net/10986/21477 English en_US Policy Research Working Paper;No. 6368 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic BUSINESS TAX REVENUE
BUSINESS TAXES
CHAMBER OF COMMERCE
CITIES
CORPORATION
DEBT
ENTREPRENEURSHIP
FIRM PROFITABILITY
INDIVIDUALS
LARGE CITIES
LICENSES
LIMITED
LIMITED LIABILITY
LIMITED LIABILITY COMPANIES
LOCAL AUTHORITIES
MUNICIPAL
MUNICIPAL LAW
MUNICIPAL LEVEL
MUNICIPAL TAXES
MUNICIPALITIES
MUNICIPALITY
PROPERTY TAXES
REGULATORY REFORM
STATE GOVERNMENT
TAX BASE
TAX COLLECTION
TAX COLLECTIONS
TAX REVENUES
spellingShingle BUSINESS TAX REVENUE
BUSINESS TAXES
CHAMBER OF COMMERCE
CITIES
CORPORATION
DEBT
ENTREPRENEURSHIP
FIRM PROFITABILITY
INDIVIDUALS
LARGE CITIES
LICENSES
LIMITED
LIMITED LIABILITY
LIMITED LIABILITY COMPANIES
LOCAL AUTHORITIES
MUNICIPAL
MUNICIPAL LAW
MUNICIPAL LEVEL
MUNICIPAL TAXES
MUNICIPALITIES
MUNICIPALITY
PROPERTY TAXES
REGULATORY REFORM
STATE GOVERNMENT
TAX BASE
TAX COLLECTION
TAX COLLECTIONS
TAX REVENUES
Bruhn, Miriam
McKenzie, David
Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 6368
description 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 Facil 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.
format Publications & Research
author Bruhn, Miriam
McKenzie, David
author_facet Bruhn, Miriam
McKenzie, David
author_sort Bruhn, Miriam
title Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
title_short Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
title_full Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
title_fullStr Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
title_full_unstemmed Using Administrative Data to Evaluate Municipal Reforms : An Evaluation of the Impact of Minas Facil Expresso
title_sort using administrative data to evaluate municipal reforms : an evaluation of the impact of minas facil expresso
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2013/02/17369910/using-administrative-data-evaluate-municipal-reforms-evaluation-impact-minas-facil-expresso
http://hdl.handle.net/10986/21477
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