In this paper, we study the role of risk-sharing in entrepreneurship-driven innovation. Studying entrepreneurship and … innovation entails modeling an occupational choice and an effort choice. Risk-sharing may increase the number of individuals who …

risks shape the equilibrium entrepreneurship in an occupational choice model. Differential social insurance of … entrepreneurial and labor risk is found to be statistically significant and detrimental to entrepreneurship. The crowding-out effect … of public production of private goods on entrepreneurship dominates the crowding-in effect of public production of public …