This paper examines the effects of credit market imperfections and idiosyncratic risks on occupational choice, capital accumulation, as well as on the income and wealth distribution in a two sector heterogeneous agent general equilibrium model. Workers and firm owners are subject to...

This paper is concerned with occupational choice under risk, where agents care about their social status. It is motivated by recent developments in the 'New Economy', which indicate that status preferences possibly provide an explanation for the observed shift towards entrepreneurial...

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...

This paper discusses a twosector neoclassical overlapping generations economy with intermediate and final goods in the spirit of Romer (1990). The risk averse agents engage in one of two alternative occupations: either firm-ownership in the intermediate goods sector, characterized by...