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) heterogeneous in their entrepreneurship abilities and choose between being employees or entrepreneurs. The sufficient conditions in …
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This paper offers a new mechanism to explain de-industrialisation in response to a price increase of the manufactured good. In our trade model, one sector (agriculture) is perfectly competitive while the other (manufacturing) is monopolistically competitive. Both industries use skilled and...
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Entrepreneurs who decide to enter an industry are faced with different levels of effective entry costs in different … firms where government subsidizes entry of domestic entrepreneurs. Under autarky the entry subsidy indirectly corrects for …
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This paper investigates the effects of monopolistic competition on entrepreneurial risk-taking in a general equilibrium model. In this context, occupational choice of risk averse agents is biased towards firm ownership. In this case, the inefficiencies due to the presence of non-diversifiable...
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