used frequently to deal with emergencies, especially for some subgroups. Household finance researchers must look beyond … precautionary savings to understand how families cope with risk. We also find evidence of a "pecking order" of coping methods in …

"An entrepreneur faces substantial non-diversifiable business risk and liquidity constraints, both of which we refer to … portfolio. The endogenous exit option provides flexibility for the entrepreneur to manage downside risk. The entrepreneur …'s optimal entry decision critically depends on the outside option, the start-up cost, risk aversion, and wealth. We show that …