Entrepreneurship, Wealth, Liquidity Constraints, and Start-Up Costs

@inproceedings{Fonseca2007EntrepreneurshipWL,
  title={Entrepreneurship, Wealth, Liquidity Constraints, and Start-Up Costs},
  author={Raquel Fonseca and Pierre-Carl Michaud and Thepthida Sopraseuth},
  year={2007}
}
  • Raquel Fonseca, Pierre-Carl Michaud, Thepthida Sopraseuth
  • Published 2007
We study the effects of liquidity constraints and start-up costs on the relationship between wealth and the fraction of entrepreneurs in an economy. We develop a dynamic occupational choice model with endogenous wealth and entry into entrepreneurship. The model predicts that, with liquidity constraints, the probability of entering entrepreneurship is an increasing function of individual wealth while the introduction of start-up costs tends to flatten this relationship. The theoretical… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.

References

Publications referenced by this paper.
SHOWING 1-10 OF 15 REFERENCES

Self-Employment around Retirement in Europe”, presented at the SHARE-ELSA,HRS user conference

  • S. Hochguertel
  • in Lund. Economy, April ,
  • 2005
Highly Influential
7 Excerpts

Uninsurable Entrepreneurial risks, capital market Imperfections, and Heterogeneity in macroeconomy" Princeton University, Working Papers

  • Y. Luo
  • 2005
Highly Influential
15 Excerpts

Liquidity Constraints, Household Wealth and Business Ownership,

  • E. Hurst, A. Lusardi
  • Journal of Political Economy,
  • 2004
1 Excerpt

Similar Papers

Loading similar papers…