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This paper suggests a solution to what has become known as the "private equity premium puzzle" (Moskowitz and Vissing-Jorgensen (2002)). We interpret occupational choice as a dynamic portfolio choice problem of a life-cycle investor facing a liquidity constraint and imperfect information about...
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. Findings also revealed that themain factors for entrepreneurship to occur are a person's age, wealth, andskill set, although … exiting entrepreneurship is not closely related to skillsor wealth but to the investment life cycle. Young agents with a high …
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