This paper makes this point with a simple, capital-less model featuring entrepreneurs, with risky production …'s classification as a corporation subject to income taxation. But going public has an upside. It permits entrepreneurs to diversify … their assets. In discouraging incorporation, the corporate tax taxes business risk-sharing, keeping more entrepreneurs …

entrepreneurs have fixed-time endowments to run their daily operations. As firms grow larger, the need to delegate decision …

redistributive taxation. In equilibrium, agents become entrepreneurs if their skill is sufficiently high or risk aversion … sufficiently low. Under heavier taxation, entrepreneurs are more skilled and less risk-averse, on average. Through these selection …

One of the leading theories of entrepreneurship is that less risk averse individuals become entrepreneurs and more risk …, retaining agent heterogeneity in risk aversion and the endogenous division of agents into less risk averse entrepreneurs and …

like France and Japan. Why? This paper explores a model in which heterogeneous entrepreneurs, broadly interpreted, exert …

Our paper demonstrates that while failure tolerance by investors may encourage potential entrepreneurs to innovate … contracts to attract entrepreneurs, leaving no capital to fund the most radical, experimental projects. The tradeoff between …