Fonseca, Raquel; Michaud, Pierre-Carl; Sopraseuth, Thepthida - 2021
We study the effects of liquidity constraints and start-up costs on the relationship between wealth and the fraction of … entrepreneurs in an economy. We develop a dynamic occupational choice model with endogenous wealth and entry into entrepreneurship … function of individual wealth while the introduction of start-up costs tends to flatten this relationship. The theoretical …
