The DOI matches its Crossref record; 53 of the 53 references it cites were found in a registry or an index.
Entrepreneurship, Frictions, and Wealth
Open accessAbstract
Although the role of financial constraints on entrepreneurial choices has received considerable attention, the effects of these constraints on aggregate capital accumulation and wealth inequality are less known.Entrepreneurship is an important determinant of capital accumulation and wealth concentration and, conversely, the distribution of wealth affects entrepreneurial choices in the presence of borrowing constraints.We construct a model that matches wealth inequality very well, for both entrepreneurs and non-entrepreneurs, and find that more restrictive borrowing constraints generate less wealth concentration, but also reduce average firm size, aggregate capital, and the fraction of entrepreneurs.We also find that voluntary bequests are an important channel that allows some high-ability workers to establish or enlarge an entrepreneurial activity: with accidental bequests only, there would be fewer large firms, fewer entrepreneurs, and less aggregate capital, but also less wealth concentration.
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Cites
Economic Welfare and the Allocation of Resources for Invention
Arrow, K. J. (1962) · The Rate and Direction of Inventive Activity · doi:10.1515/9781400879762-024 · Cited by 8,635
An estimated model of entrepreneurial choice under liquidity constraints
Evans, D. S., & Jovanovic, B. (1989) · Journal of Political Economy · doi:10.1086/261629 · Cited by 3,347
On the Size Distribution of Business Firms
Lucas, R. E. (1978) · The Bell Journal of Economics · doi:10.2307/3003596 · Cited by 3,236
Uncertain Lifetime, Life Insurance, and the Theory of the Consumer
Yaari, M. E. (1965) · The Review of Economic Studies · doi:10.2307/2296058 · Cited by 3,198
Occupational Choice and the Process of Development
Banerjee, A. V., & Newman, A. F. (1993) · Journal of Political Economy · doi:10.1086/261876 · Cited by 3,087
Debt, Deficits, and Finite Horizons
Blanchard, O. J. (1985) · Journal of Political Economy · doi:10.1086/261297 · Cited by 2,392
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Some Empirical Aspects of Entrepreneurship
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Gollin, D. (2002) · Journal of Political Economy · doi:10.1086/338747 · Cited by 1,977
Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis
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Cited by
Song, Z., Storesletten, K., & Zilibotti, F. (2011) · American Economic Review · doi:10.1257/aer.101.1.196 · Cited by 1,741
Financial Frictions and the Persistence of History: A Quantitative Exploration
Buera, F. J., & Shin, Y. (2013) · Journal of Political Economy · doi:10.1086/670271 · Cited by 451
The Distribution of Wealth and Fiscal Policy in Economies With Finitely Lived Agents
(2011) · Econometrica · doi:10.3982/ecta8416 · Cited by 422
Uninsured idiosyncratic investment risk and aggregate saving
Angeletos, G.-M. (2007) · Review of Economic Dynamics · doi:10.1016/j.red.2006.11.001 · Cited by 346
Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed
Hurst, E., Li, G., & Pugsley, B. (2014) · The Review of Economics and Statistics · doi:10.1162/rest_a_00363 · Cited by 286
Metadata
- Authors
- Cagetti, M., & De Nardi, M.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2006-10
- Volume
- 114
- Issue
- 5
- Pages
- 835-870
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W3125344093
- Cited by
- 1,013
- References
- 53
- FWCI
- 104.32
- Type
- journal article
- Language
- en
- Open access
- gold
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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