We develop a model of occupational choice and entrepreneurship in which market frictions limit the possibilities for diversifying entrepreneurial risk. A concern for relative standing arises in this model even though individuals care only about the consumption of standard commodities. In...

This paper examines the performance of Cuba’s private and state-run tourist restaurants following the economic reforms of 2011. The policy reforms made it easier to open private restaurants, and reduced constraints owners/managers faced in hiring workers, obtaining credit, and procuring...