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

Published in: Comparative Labor Law and Policy Journal, v. 28, no. 4, Summer 2007, p. 637-674

Posted on RAND.org on January 01, 2007

by Raquel Fonseca Benito, Pierre-Carl Michaud, Thepthida Sopraseuth

This paper focuses on the effect of liquidity constraints and startup costs on the relationship between wealth and fraction of entrepreneurs in an economy. The authors consider a model of heterogeneous agents with occupational choice.

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