Ghatak, Maitreesh; Morelli, Massimo; Sjöström, Tomas - London School of Economics and Political Science; Ohio …; … - 2006
We study market inefficiencies and policy remedies when agents choose their occupations, and entrepreneurialtalent is subject to private information. Untalented entrepreneurs depress the returns to entrepreneurshipbecause of adverse selection. The severity of this problem depends on the outside...