We study entrepreneurs’ behavioral responses of effort (moral hazard) to avoid business failure.This is done in the …

This paper explores the impact of credit market on the entrepreneurs and demand for credit in a credit constrained … due to presence/absence of entrepreneurs, i.e., low price of capital in autarky may reflect lack of demand for credit due … to scarcity of entrepreneurs and not capital abundance and eventually may lead to capital outflow from a capital scarce …