earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self …-employment entry and exit under risk are estimated, which include a standard risk aversion parameter. The model predicts that the …

We present first evidence how individual risk preferences shape entrepreneurial investment among the very wealthy using … Study. The data include private wealth balance sheets, in particular the value of own private business assets, and a … standard measure of risk tolerance. We find that wealthy individuals are more likely to be entrepreneurs and invest a larger …