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This paper studies whether promoting entrepreneurship is always growth-enhancing under a dynamic general … supply effect. The working of these two effects results in a non-monotone entrepreneurship-economic growth relationship. Due … individuals. As a result, there can be too less or too much entrepreneurship in the decentralized equilibrium. Although having …
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We present a model in which managers are risk-averse and firms compete for scarce managerial talent ("alpha"). When managers are not mobile across firms, firms provide efficient compensation, which allows for learning about managerial talent and for insurance of low-quality managers. When...
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We present a model where firms compete for scarce managerial talent ("alpha") and managers are risk-averse. When managers cannot move across firms after being hired, employers learn about their talent, allocate them efficiently to projects and provide insurance to low-quality managers. When...
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