On entrepreneurial risk-taking and the macroeconomic effects of financial constraints.

Autor/inn/en	Clemens, Christiane; Heinemann, Maik
Titel	On entrepreneurial risk-taking and the macroeconomic effects of financial constraints.
Quelle	In: Journal of economic dynamics & control, 34 (2010) 9, S. 1610-1626 PDF als Volltext Link als defekt meldenVerfügbarkeit
Beigaben	grafische Darstellungen
Sprache	englisch
Dokumenttyp	online; gedruckt; Zeitschriftenaufsatz
ISSN	0165-1889
DOI	10.1016/j.jedc.2010.06.015
Schlagwörter	Soziale Mobilität; Gleichgewicht; Vermögensverteilung; Verschuldung; Berufswahl; Unternehmer; Theorie
Abstract	This paper deals with credit market imperfections and idiosyncratic risks in a two-sector heterogeneous agent dynamic general equilibrium model of occupational choice. We focus especially on the effects of tightening financial constraints on macroeconomic performance, entrepreneurial risk-taking, and social mobility. Contrary to many models in the literature, our comparative static results cover a broad range for financial constraints, from an unrestrained to a perfectly constrained economy. We find substantial gains in output, welfare, and wealth equality associated with credit market improvements. The marginal gains from relaxing constraints are largest for empirically relevant debtequity ratios. Interestingly, the entrepreneurship rate and social mobility respond non-monotonically to a change in the tightness of financial constraints. The results crucially depend on feedback effects in general equilibrium, where optimal firm sizes and the demand for credit are endogenously determined.
Erfasst von	ZBW - Leibniz-Informationszentrum Wirtschaft, Kiel
Update	2011/4