entrepreneurs) or to become informed dealers in financial markets. Agents incur costs to become informed dealers and develop skills … assets entrepreneurs put up for sale. Thanks to their information advantage and valuation skills, dealers are able to provide … incentives to entrepreneurs to originate good assets. However, the opaqueness of the OTC market allows dealers to extract …

incorporated firms to hire capital.This paper makes this point with a simple, capital-less model featuring entrepreneurs, with … entrepreneurs to diversify their assets. In discouraging incorporation, the corporate tax taxes business risk-sharing, keeping more … entrepreneurs private and, thus, exposed to more risk. The added risk experienced by these entrepreneurs limits their demands for …