An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
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4,281 citations
Cites background from "An Estimated Model of Entrepreneuri..."
...Previous research has drawn conclusions about the effect of individual differences on the decision to exploit entrepreneurial opportunity based on the assumption of a zero correlation between individual differences and opportunity discovery (Khilstrom and Laffont 1979, Evans and Jovanovic 1989 )....
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...Researchers typically adopt this approach because they draw on neoclassical economic or psychological theories that assume people will discover the same opportunities in a given technological change (Khilstrom and Laffont 1979), or discover opportunities that are uncorrelated with the attributes of the discoverers ( Evans and Jovanovic 1989 )....
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...Much of the existing empirical evidence on opportunity exploitation has assumed that the attributes of people who discover opportunities are uncorrelated with the attributes of the opportunities that they discover ( Evans and Jovanovic 1989 )....
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...Because any given entrepreneur can discover the complete set of opportunities that occur in response to a given technological change, neoclassical economics argues that entrepreneurs select between different opportunities through a process of maximization (Khilstrom and Laffont 1979, Evans and Jovanovic 1989 )....
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2,426 citations
2,218 citations
Cites background or methods or result from "An Estimated Model of Entrepreneuri..."
...Among those who received a sum, the mean size of payment received by workers was £3,617 in 1981 (with a standard deviation of £8,421) and £5,655 in 1991 (with a standard deviation of £18,700) ....
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...In recent work using U.S. micro data, Evans and Leighton (1989) and Evans and Jovanovic (1989) have argued formally that entrepreneurs face liquidity constraints....
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...This seems a big effect even when contrasted with the Evans-Jovanovic estimate that removing all liquidity constraints would increase the flow of entrepreneurs from 3.8% to 5.1% (Evans and Jovanovic 1989, p. 824) ....
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...Microeconometric work includes Fuchs (1982) and Rees and Shah (1986) and, more recently, Pickles and O’Farrell (1987) , Borjas and Bronars (1989) , Evans and Jovanovic (1989) , and Evans and Leighton (1989) .1 This article follows in the general spirit of 1 OECD (1986) and Blau (1987) are aggregate…...
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2,188 citations
References
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