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How much do financial constraints delay entrepreneurship and how much do they cost households in terms of foregone … micro-entrepreneurship in such countries. The main prediction of the model is that individuals with low entrepreneurial …
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increases the rate of entrepreneurship. The effect is stronger for entrepreneurs who incorporate their business, especially for … that financial constraints hamper growth-oriented entrepreneurship …
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We present a calibrated general equilibrium model in which collateral constraints substantially amplify and propagate aggregate shocks through their impact on asset prices and capital allocation. Compared to previous studies, this result is more robust and comes with more realistic interest rate...
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to funding increases the rate of entrepreneurship and that the effect is stronger for entrepreneurs who incorporate their … distributions. Our findings suggest that financial constraints hamper growth-oriented entrepreneurship …
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