consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … into entrepreneurship, we use changes in entry regulation into skilled trades. Estimation results are consistent with the …

. Workers and firm owners are subject to idiosyncratic shocks. Entrepreneurship is the riskier occupation. Compared to an … likelihood of entrepreneurship increases with individual wealth. -- DSGE model ; wealth distribution ; occupational choice …