Entrepreneurship and Endogenous Volatility
In this paper we document the relationship between idiosyncratic risk and non productive expenditures at the rm level from the Kauman Firm Survey. We then propose a model of entrepreneurial activity subject to nancial constraints where rms engage in borrowing to nance capital and wages, but also non productive expenses such as brand development, R&D, management consulting, marketing, etc. We allow for the non productive expenditures to aect the spread of the distribution from which shocks are drawn.
Year of publication: |
2011
|
---|---|
Authors: | Boedo, Hernan Moscoso ; D'Erasmo, Pablo |
Institutions: | Society for Economic Dynamics - SED |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Intangibles and Endogenous Firm Volatility over the Business Cycle
Boedo, Hernan Moscoso, (2013)
-
Financial Structure, Informality and Development
Boedo, Hernan Moscoso, (2010)
-
Optimal Technology and Development
Boedo, Hernan Moscoso, (2007)
- More ...