Paulson, Anna L.; Townsend, Robert M.; Karaivanov, Alexander - In: Journal of Political Economy 114 (2006) 1, pp. 100-144
We present and estimate a model in which the choice between entrepreneurship and wage work may be influenced by financial market imperfections. The model allows for limited liability, moral hazard, and a combination of both constraints. The paper uses structural techniques to estimate the model...