Journal ArticleDOI
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
David S. Evans,Boyan Jovanovic +1 more
TLDR
The authors show that the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal, and a would-be entrepreneur must bear most of the risk inherent in his venture.Abstract:
Is the capital function distinct from the entrepreneurial function in modern economies? Or does a person have to be wealthy before he or she can start a business? Knight and Schumpeter held different views on the answer to this question. Our empirical findings side with Knight: Liquidity constraints bind, and a would-be entrepreneur must bear most of the risk inherent in his venture. The reasoning is roughly this: The data show that wealthier people are more inclined to become entrepreneurs. In principle, this could be so because the wealthy tend to make better entrepreneurs, but the data reject this explanation. Instead, the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal.read more
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Journal ArticleDOI
Competitive in the lab, successful in the field?
Lars Ivar Oppedal Berge,Kjetil Bjorvatn,Armando José Garcia Pires,Bertil Tungodden,Bertil Tungodden +4 more
TL;DR: In this article, the authors compare competitive in the lab, successful in the field, and conclude that competitive lab experiments are more successful than successful ones in the real world: "Competitive in the Lab, Successful in the Field".
Journal ArticleDOI
Finance, Firm Size, and Growth
Thorsten Beck,Thorsten Beck,Asli Demirguc-Kunt,Luc Laeven,Luc Laeven,Ross Levine,Ross Levine +6 more
TL;DR: In this paper, the authors examined whether financial development boosts the growth of small firms more than large firms and provided information on the mechanisms through which financial development fosters aggregate economic growth.
Journal ArticleDOI
Gender inequality in wage earnings and female self-employment selection
TL;DR: The authors examined how gender inequality in wage earnings may precipitate some women's selection out of wage employment and into self-employment, and found that women's lower wage returns to observed worker characteristics have a positive and significant effect on women's decision to switch from wage employment to self employment.
Book
Persistence, Privilege, and Parenting: The Comparative Study of Intergenerational Mobility.
TL;DR: The Comparative Study of Intergenerational Mobility as mentioned in this paper was the first work to consider intergenerational mobility in the context of persistence, privilege, and parenting in a family.
Journal ArticleDOI
Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?
TL;DR: The authors used Census Bureau data to study local determinants of manufacturing startups across cities and industries, finding that new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961).
References
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Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Posted ContentDOI
Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
Book
Risk, Uncertainty and Profit
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Journal ArticleDOI
The theory of economic development
Posted Content
Competition and Entrepreneurship
TL;DR: Kirzner as discussed by the authors argues that the assumption of perfect knowledge is unrealistic and argues that every market participant is a potential entrepreneur who can exploit a situation, which depends on a lack of perfect information among the market participants.