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And especially in development.
Institute researches confirm that efficiency economic
Activity depends on the law regulating it. In this sense we will be
To speak about "good laws"and"bad laws ': the law is good, if it
Guarantees economic efficiency both promotes it, and it is bad, if
Interferes with it or worsens it. Because of bad laws it is necessary us too
Are compelled to incur costs of activity outside the limits of the law.
The price of submission to the law
When they begin it and when deal with a question - whether to continue further.
For the analytical purposes the Institute uses two concepts: "the access price" to
To field of activity and "the continuation price" it. Such approach allows to study all
Requirements with which citizens for right reception legally should satisfy
To be engaged in certain economic activities, and then all requirements,
It is necessary for them to satisfy to remain within the limits of the law. We
Aspired to learn, how these costs influence an individual choice.
We estimated various costs of access to activity within the limits of the law and
Costs of continuation of this legislative life. But it is necessary to understand that
The average citizen similar does not do anything. The one who denies
Legal system or uses it, only rather approximately counts,
In what submission to requirements of the law and that it is possible to receive can manage
In exchange. The choice is based not on an exact estimation, and on vague representation -
Similar to volume that wood is more terrible than separate trees. Our research
Shows that readiness of Peruvians to operate outside the limits of the law in
Considerable degree there is a result rational, though also not so detailed,
It is impossible for any of the kinds of economic activities studied by Institute
To be engaged on the lawful bases without preliminary performance of a number
Requirements. To define these requirements and expenses connected with them,
The institute has studied four fields of activity in which extralegality was
The basic social problem: the industry, housing construction,
Trade and transport.
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