business creation in a world where new business owners are exposed to idiosyncratic risk due to initial imperfect … diversification. This paper uses this framework to analyze how entrepreneurial risk has changed over time and how this has affected … employment in the US. Conditions are provided under which entrepreneurial risk can be identified using micro data on the size …

equilibrium model with uninsurable entrepreneurial risk and capital-market imperfections to explore the implications of … uninsurable entrepreneurial risk for wealth distribution and aggregate activity in an incomplete market economy. It is shown that … entrepreneurial risk can substantially affect both the wealth distribution and the macroeconomy …

labor risk is found to be statistically significant and detrimental to entrepreneurship. The crowding-out effect of public … shape equilibrium entrepreneurship in an occupational choice model. Differential social insurance of entrepreneurial and … production of private goods on entrepreneurship dominates the crowding-in effect of public production of public goods in the OECD …

. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The …

. More risk-averse entrepreneurs default earlier, but also choose higher leverage, even though leverage makes his equity more … risky. Non-diversified entrepreneurs demand both systematic and idiosyncratic risk premium. Cash-out option and external … equity further improve diversification and raise the entrepreneur's valuation of the firm. Finally, entrepreneurial risk …