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
Health insurance and the supply of entrepreneurs
TL;DR: In this article, the authors investigate whether the lack of health insurance portability affects the probability that self-employed individuals will become self-employees, by examining the impact of variables relating to the health insurance and health status of these workers and their families.
Journal ArticleDOI
Personal Income Taxes and the Growth of Small Firms
Robert Carroll,Douglas Holtz-Eakin,Douglas Holtz-Eakin,Mark Rider,Harvey S. Rosen,Harvey S. Rosen,Harvey S. Rosen +6 more
TL;DR: In this article, the authors investigate the effect of individual income tax situations on the growth rate of small businesses and find that individual income taxes exert a statistically and quantitatively significant influence on firm growth rates.
Journal ArticleDOI
Entrepreneurial Optimism in the Market for Technological Inventions
TL;DR: In this article, the authors investigate the role of optimism in entrepreneurs' decision to pursue disclosure or a contingent payment scheme (CPS) offer, where an invention's value is inferred from the entrepreneur's willingness to make her pay contingent on the invention's success.
Journal ArticleDOI
Is Neoclassical Economics Still Entrepreneurless
Milo Bianchi,Magnus Henrekson +1 more
TL;DR: In this article, the authors review and evaluate some recent contributions on modeling entrepreneurship within a neoclassical framework, analyzing how and to what extent the fundamental ingredients suggested in the social science literature were captured, and highlight how a simplistic interpretation of the existing mainstream approaches incorporating entrepreneurship runs the risk of leading to distortionary policy interventions.
Journal ArticleDOI
Models of self-employment in a competitive market
Abstract: In this chapter a survey is given of models in the literature that can be used to explain the number of self-employed individuals in the framework of a competitive market.1 Most of these models were actually developed for other goals. Some of the models discussed were developed to explain the number of firms, the size distribution of firms, or the number of entrepreneurs. Others were developed to explain other phenomena, for example the optimal tax rate, while making the number of self-employed individuals endogenous as an extra complication. For this reason this survey is more than a trivial enumeration of models present in the literature.
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.