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 …

In order to examine the impacts of market size on entrepreneurship, we estimate a monopolistic competition model that … involves the workers' decisions to pursue entrepreneurship by using data on Japanese prefectures. Our results show that a … larger market size in terms of population density leads to a higher incentive for individuals to become entrepreneurs. A 10 …