Download or read book Liquidity Constraints Spillovers and Entrepreneurship written by Rafael P. Ribas and published by . This book was released on 2019 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper exploits a welfare programme in Brazil to investigate the role of financial constraints, in opposition to general equilibrium mechanisms, in explaining entrepreneurship. A method for decomposing its impact into direct and indirect effects is presented. Instead of requiring two-level randomization, this method only assumes cluster-level independence of treatment. Results indicate that the number of formal entrepreneurs increased, but only due to the indirect component. Further tests suggest that the indirect effect is associated with an increase in private transfers between households. Thus entrepreneurship tends to respond more to the interaction between households than to financial constraints.

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 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 Liquidity Constraints and Entrepreneurial Performance written by Hans K. Hvide and published by . This book was released on 2007 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Liquidity Constraints Household Wealth and Entrepreneurship Revisited written by Robert W. Fairlie and published by . This book was released on 2012 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: A large body research shows a positive relationship between wealth and entrepreneurship and interprets the relationship as providing evidence of liquidity constraints. Recently, however, the liquidity constraint interpretation has been challenged because of the finding that the relationship between business entry rates and assets is flat throughout most of the asset distribution and only rises dramatically after this point (Hurst and Lusardi 2004). We reexamine the liquidity constraint hypothesis in three ways. First, we demonstrate that examining the relationship separately for those who experience a job loss and those who do not reveals generally increasing entry rates through the wealth distribution for both groups. Based on the entrepreneurial choice model of Evans and Jovanovic (1989), these two groups face different incentives, and thus have different solutions to the entrepreneurial decision. We also find evidence of a stronger relationship between entrepreneurship and a different measure of wealth - net housing equity - for the two groups. Second, we examine the liquidity constraint hypothesis using a two-period simulation model that extends the Evans and Jovanovic (1989) model. The model shows how exogenous wealth shocks can be used to accurately identify the presence of liquidity constraints even allowing for endogenous saving and correlated abilities. Third, we provide new evidence from matched Current Population Survey (1993-2004) data to study whether changes in housing prices affect self-employment entry.

Download or read book Entrepreneurial Decisions and Liquidity Constraints written by Douglas Holtz-Eakin and published by . This book was released on 1993 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Public Policy in the Entrepreneurial Society written by David B. Audretsch and published by Edward Elgar Publishing. This book was released on 2013-12-27 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book David Audretsch examines the impact of public policy in the entrepreneurial society and in ensuring that entrepreneurship continues to serve as a driving force for economic performance. Do university policies or knowledge conditions

Download or read book Liquidity Constraints and Their Effects on the Transition Into Entrepreneurship written by Teodor Stoyanov and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Economics of Entrepreneurship written by Simon C. Parker and published by Now Publishers Inc. This book was released on 2005 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: An introductory, non-technical overview of what economics adds to our understanding of entrepreneurship. Identifies issues that can be resolved using economic analysis, presents the models that form the foundations of the economics of entrepreneurship, and reviews theoretical contributions and empirical findings consistent with these models.

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 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.

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 Public Policy and the Economics of Entrepreneurship written by Douglas Holtz-Eakin and published by MIT Press. This book was released on 2003-12-23 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: This groundbreaking collection of essays by leading economists examines different aspects of entrepreneurship and its relation to public policy. Entrepreneurship has been a subject of much recent discussion among academics and policymakers because of the belief that it invigorates the economy—producing greater productivity, more jobs, and higher economic growth. President George W. Bush promoted his economic plan by pointing to its encouragement of entrepreneurship. Yet, despite its importance, the topic of entrepreneurship is underrepresented in the economics literature. The contributors to Public Policy and the Economics of Entrepreneurship examine different aspects of entrepreneurship and its relation to public policy to help us reach a better understanding of the economic role of entrepreneurs. The contributors, all prominent economists, first consider what policies effectively encourage entrepreneurship, discussing a possible role for government in venture capital markets, the effect of the tax code's subsidy of health insurance for the self-employed, and the impact of banking deregulation on entrepreneurial activity. Two contributors then examine entrepreneurship in "unexpected places"—not small businesses, but large pharmaceutical firms and nonprofit organizations. The final essays explore the effect of entrepreneurship on inequality, looking at statistical evidence of upward mobility for self-employed blacks and Hispanics and discussing the effect on entrepreneurial activity of policies to reduce wealth inequality. The contributors hope, by offering a rigorous economic examination of entrepreneurship, to foster better public policies that encourage and support entrepreneurial activity.

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 Liquidity Constraints and Investments written by Feikeh Sung and published by . This book was released on 1993 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: