Download or read book Liquidity Constraints Household Wealth and Entrepreneurship Revisited written by Robert W. Fairlie and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The existence of liquidity constraints for entrepreneurs has been challenged by the finding that business entry rates are invariant throughout most of the asset distribution and increase dramatically only at the top of this distribution. We reexamine the liquidity constraint hypothesis in three ways. First, we separately examine those who do and those who do not experience a job loss to reveal#generally increasing entry rates through the wealth distribution for both groups, and show why these groups should be separately analyzed. Second, we use a two-period simulation of the Evans and Jovanovic model to shows how exogenous wealth shocks can accurately identify the presence of liquidity constraints. Third, we provide new evidence from matched Current Population#Survey data to show that housing appreciation measured at the MSA-level is a significantly positive - determinant of entry into self-employment, after controlling for changes in local economic conditions.
Download or read book Liquidity Constraints Household Wealth and Entrepreneurship Revisited written by Robert W. Fairlie and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Liquidity Constraints Household Wealth and Entrepreneurship written by Erik Hurst and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The propensity to become a business owner is a nonlinear function of wealth.The relationship between wealth and entry into entrepreneurship is essentially flat over the majority of the wealth distribution.It is only at the top of the wealth distribution--after the ninety-fifth percentile--that a positive relationship can be found. Segmenting businesses into industries with high-- and low--starting capital requirements, we find no evidence that wealth matters more for businesses requiring higher initial capital.When using inheritances as an instrument for wealth, we find that both past and future inheritances predict current business entry, showing that inheritances capture more than simply liquidity.We further exploit the regional variation in house prices and find that households that lived in regions in which housing prices appreciated strongly were no more likely to start a business than households in other regions.(Publication abstract).
Download or read book Do Liquidity Constraints Matter for New Entrepreneurs written by Kevin Moore and published by . This book was released on 2004 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Numerous studies have found a positive relationship between wealth and entering entrepreneurship, and interpret this as evidence of the existence of liquidity constraints. However, recent research has shown that the relationship between wealth and entering entrepreneurship may be non-linear and only significant for high-wealth households; this result cannot be interpreted as evidence of liquidity constraints. Using data from the SCF, we construct a proxy for wealth based on the household's home equity wealth at the time of the entrepreneurial decision. The results provide further evidence that the relationship between wealth and entering entrepreneurship is only significant for high-wealth households and that liquidity constraints do not appear to bind for the majority of new entrepreneurs. Possible explanations for the relationship between wealth and becoming an entrepreneur include lower risk aversion and differences in the types of businesses started by high-wealth households"--Federal Reserve Board web site.
Download or read book Liquidity Constraints Household Wealth and Self Employment written by Julie M. Zissimopoulos and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence of liquidity constraints affecting entrepreneurship includes increasing rates of business formation with increases in household wealth and no relationship between the likelihood of business formation and wealth at high wealth levels. Using longitudinal data from the Health and Retirement Study on workers over age 50 and employing probit regressions with a non-linear specification of household wealth and liquid wealth, the authors find the relationship between wealth and business formation is consistent with this pattern. The paper also finds that wealth matters more for the formation of businesses requiring high starting capital. Employing the availability of a lump-sum distribution option (LSO) of an employer-provided pension plan as a new proxy for liquidity, the results show that workers with an LSO are more likely than workers with a pension and without an LSO to transition into self-employment. This provides further evidence of the existence and importance of liquidity constraints.
Download or read book Do Liquidity Constraints Matter for New Entrepreneurs written by Kevin B. Moore and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Numerous studies have found a positive relationship between wealth and entering entrepreneurship, and interpret this as evidence of the existence of liquidity constraints. However, recent research has shown that the relationship between wealth and entering entrepreneurship may be non-linear and only significant for high-wealth households; this result cannot be interpreted as evidence of liquidity constraints. Using data from the SCF, we construct a proxy for wealth based on the household's home equity wealth at the time of the entrepreneurial decision. The results provide further evidence that the relationship between wealth and entering entrepreneurship is only significant for high-wealth households and that liquidity constraints do not appear to bind for the majority of new entrepreneurs. Possible explanations for the relationship between wealth and becoming an entrepreneur include lower risk aversion and differences in the types of businesses started by high-wealth households"--Federal Reserve Board web site.
Download or read book Why are Entrepreneurs Liquidity Constrained written by Wei-ying Chang and published by . This book was released on 1997 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Entrepreneurial Decisions and Liquidity Constraints written by Douglas Holtz-Eakin and published by . This book was released on 1994 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Do Household Savings Encourage Entrepreneurship Household Wealth Parental Wealth and the Transition in and Out of Entrepreneurship written by Erik Hurst and published by . This book was released on 2015 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data from three different surveys, we report several important facts about entrepreneurship and household savings. Moreover, we show that the propensity to become a business owner in the United States is a non-linear function of wealth. The relationship between wealth and entry into entrepreneurship is essentially flat over the majority of the wealth distribution. It is only at the top of the wealth distribution - after the 95th percentile - that a positive relationship can be found. Segmenting businesses into industries with high and low starting capital requirements, we find no evidence that wealth matters more for businesses requiring higher initial capital. We also exploit the regional variation in house prices as an instrument for liquidity. Households who lived in regions where housing prices appreciated strongly were no more likely to start a business than households in other regions. Not only household wealth but also parental wealth has not effect on business formation. Moreover, wealth has no effect on business survival. Thus, while liquidity constraints may be important for some households, they are not a major impediment to small business formation and business success in the United States.
Download or read book Issues in Investments and Investing 2013 Edition written by and published by ScholarlyEditions. This book was released on 2013-05-01 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: Issues in Investments and Investing / 2013 Edition is a ScholarlyEditions™ book that delivers timely, authoritative, and comprehensive information about Pension Economics. The editors have built Issues in Investments and Investing: 2013 Edition on the vast information databases of ScholarlyNews.™ You can expect the information about Pension Economics in this book to be deeper than what you can access anywhere else, as well as consistently reliable, authoritative, informed, and relevant. The content of Issues in Investments and Investing: 2013 Edition has been produced by the world’s leading scientists, engineers, analysts, research institutions, and companies. All of the content is from peer-reviewed sources, and all of it is written, assembled, and edited by the editors at ScholarlyEditions™ and available exclusively from us. You now have a source you can cite with authority, confidence, and credibility. More information is available at http://www.ScholarlyEditions.com/.
Download or read book The Oxford Handbook of Entrepreneurial Finance written by Douglas Cumming and published by Oxford University Press. This book was released on 2012-02-10 with total page 936 pages. Available in PDF, EPUB and Kindle. Book excerpt: The topic of Entrepreneurial Finance involves many issues, including but not limited to the risks and returns to being an entrepreneur, financial contracting, business planning, capital gaps and the availability of capital, market booms and busts, public policy and international differences in entrepreneurial finance stemming from differences in laws, institutions and culture. As these issues are so extremely broad and complex, the academic and practitioner literature on topic usually focuses on at most one or two of these issues at one time. The Oxford Handbook of Entrepreneurial Finance provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries. It is organized into seven parts, the first of which introduces the issues, explains the organization of the Handbook, and briefly summarizes the contributions made by the authors in each of the chapters. Part II covers the topics pertaining to financing new industries and the returns and risk to being an entrepreneur. Part III deals with entrepreneurial capital structure. Part IV discusses business planning, funding and funding gaps in entrepreneurial finance with a focus on credit markets. Part V provides analyses of the main alternative sources of entrepreneurial finance. Part VI considers issues in public policy towards entrepreneurial finance. Part VII considers international differences in entrepreneurial finance, including analyses of entrepreneurial finance in weak institutional environments as well as microfinance.
Download or read book Entrepreneurship Theory and Practice written by Francis J. Greene and published by Bloomsbury Publishing. This book was released on 2020-02-22 with total page 515 pages. Available in PDF, EPUB and Kindle. Book excerpt: This beautifully written and thoroughly modern core textbook provides a strong bridge between entrepreneurship theory and practice and looks at the entire life cycle of a business, including the often neglected area of business closure. Underpinned by strong academic rigour, the text takes a critical approach, yet is also highly accessible and readable, explaining complex concepts clearly and succinctly. Research-led yet practice oriented, it examines the latest evidence-based thinking in the field and applies this to the practice of entrepreneurship through a plethora of practical examples, global cases, useful tools, and engaging, multi-faceted pedagogy. Written by a recognised expert on entrepreneurship, Entrepreneurship Theory and Practice is the ideal textbook for undergraduate, postgraduate, and MBA students taking modules on entrepreneurship that blend theory and practice. It requires no prior knowledge of entrepreneurship.
Download or read book Entrepreneurship and Liquidity Constraints written by Jenny Nykvist and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hurst and Lusardi (2004) use a specification with higher-order polynomials to estimate the relationship between wealth and entrepreneurship. They find evidence against the existence of extensive liquidity constraints in the United States. In this paper, their approach is replicated on Swedish data. A positive relationship between wealth and entrepreneurship is found, which supports the liquidity constraints hypothesis. Alternative methods for handling the endogeneity problem and distinguishing between absolute decreasing risk aversion and liquidity constraints lend further support to the hypothesis. The analysis suggests that there exist liquidity constraints in Sweden, which are possibly more extensive than in the United States.
Download or read book Hollowed Out written by David Madland and published by Univ of California Press. This book was released on 2015-06-24 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: For the past several decades, politicians and economists thought that high levels of inequality were good for the economy. But because America’s middle class is now so weak, the US economy suffers from the kinds of problems that plague less-developed countries. As Hollowed Out explains, to have strong, sustainable growth, the economy needs to work for everyone and expand from the middle out. This new thinking has the potential to supplant trickle-down economics—the theory that was so wrong about inequality and our economy—and shape economic policymaking for generations.
Download or read book The Other One Percent written by Sanjoy Chakravorty and published by Oxford University Press. This book was released on 2017 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the most remarkable stories of immigration in the last half century is that of Indians to the United States. People of Indian origin make up a little over one percent of the American population now, up from barely half a percent at the turn of the millennium. Not only has its recent growth been extraordinary, but this population from a developing nation with low human capital is now the most-educated and highest-income group in the world's most advanced nation. The Other One Percent is a careful, data-driven, and comprehensive account of the three core processes-selection, assimilation, and entrepreneurship-that have led to this rapid rise. This unique phenomenon is driven by-and, in turn, has influenced-wide-ranging changes, especially the on-going revolution in information technology and its impact on economic globalization, immigration policies in the U.S., higher education policies in India, and foreign policies of both nations. If the overall picture is one of economic success, the details reveal the critical issues faced by Indian immigrants stemming from the social, linguistic, and class structure in India, their professional and geographic distribution in the U.S., their pan-Indian and regional identities, their strong presence in both high-skill industries (like computers and medicine) and low-skill industries (like hospitality and retail trade), and the multi-generational challenges of a diverse group from the world's largest democracy fitting into its oldest.
Download or read book Productivity Revisited written by Ana Paula Cusolito and published by World Bank Publications. This book was released on 2018-12-21 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity has again moved to center stage in two critical academic and policy debates: the slowing of global growth amid spectacular technological advances, and developing countries’ frustratingly slow progress in catching up to the technological frontier. Productivity Revisited brings together the new conceptual advances of 'second-wave' productivity analysis that have revolutionized the study of productivity, calling much previous analysis into question while providing a new set of tools for approaching these debates. The book extends this analysis and, using unique data sets from multiple developing countries, grounds it in the developing-country context. It calls for rebalancing away from an exclusive focus on misallocation toward a greater focus on upgrading firms and facilitating the emergence of productive new establishments. Such an approach requires a supportive environment and various types of human capital--managerial, technical, and actuarial--necessary to cultivate new transformational firms. The book is the second volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers.
Download or read book Measuring Entrepreneurial Businesses written by John Haltiwanger and published by University of Chicago Press. This book was released on 2017-09-21 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges brings together and unprecedented group of economists, data providers, and data analysts to discuss research on the state of entrepreneurship and to address the challenges in understanding this dynamic part of the economy. Each chapter addresses the challenges of measuring entrepreneurship and how entrepreneurial firms contribute to economies and standards of living. The book also investigates heterogeneity in entrepreneurs, challenges experienced by entrepreneurs over time, and how much less we know than we think about entrepreneurship given data limitations. This volume will be a groundbreaking first serious look into entrepreneurship in the NBER's Income and Wealth series.
