KAN, Kamhon; TSAI, Wei-Der - Institute of Economics, Academia Sinica - 2005
Evans and Jovanovic (1989) find that wealth is an important determinant of business startups due to liquidity constraints. However, Cressy (2000) argues that if risk aversion is a negative function of wealth, Evans and Jovanovic's empirical results could be spurious and the positive effect of...