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We develop an equilibrium model where risk-averse agents can choose between employment and entrepreneurship. An …. However, we show that income risk is not the only driver for the occupational choice of agents with entrepreneurship options … - as commonly argued. Instead, more risk-averse agents with those options have a lower valuation of entrepreneurship, and …
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We study the dynamic general equilibrium of an economy where risk averse shareholders delegate the management of the firm to risk averse managers. The optimal contract has two main components: an incentive component corresponding to a non-tradable equity position and a variable 'salary'...
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This paper tests a real options model of stepwise entrepreneurial entry. We distinguish between part time and full time entry among the self employed in Swedish knowledge intensive industries. Two multinomial logit models tests the entry from employment to part or full time entry in 1998, and to...
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