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 December 31, 2006

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

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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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