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jobs. Instead, failed entrepreneurs must seek other jobs in an imperfectly informed external labour market. While this is … ex-post inefficient, it provides entrepreneurs with high-powered incentives ex ante. We show that two types of equilibria … can arise (and sometimes coexist). In a low (high) entrepreneurship equilibrium, the market for failed entrepreneurs is …
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more such innovations by entrepreneurs. Consequently, a venture capital market implies that more innovations are created …
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This paper explores the effects of foreign direct investment, measured by mergers and acquisitions, on domestic entrepreneurial entry. We use a micro-panel of more than two thousand individuals disaggregated by industry in seventy countries including both developed and developing economies,...
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