Entrepreneurs , Firms and Global Wealth since 1850
نویسنده
چکیده
منابع مشابه
The Main Street Economist
New technologies, products, and services are brought to market every year by small entrepreneurs. The heart valve, safety razor, and soft contact lens are just a few examples. One common thread ties all successful entrepreneurs together—innovation. Innovation brings something new or unusual to the marketplace, and in the process sharpens competitiveness and creates wealth. New firms, new produc...
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Since the 1980s, the U.S. income distribution has become considerably more concentrated toward the top while the wealth distribution has not. I argue that this can be accounted for by occupational shifts caused by the decline in tax progressivity. To show this, I construct a dynamic general equilibrium model of occupational choice which distinguishes between entrepreneurs, who run their own fir...
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When a manager, an entrepreneur and outside investors interact under asymmetric information, outsiders limit their stake to eliminate insider cheating; and entrepreneurs offer managers a contractual wage sufficient to deter cheating. When capital is too expensive, this contract is infeasible, and owner-managers rule, otherwise entrepreneurialmanagerial pairs emerge. Individuals with managerial ...
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This paper conducts a theoretical and quantitative analysis of how entrepreneurs choose firm size, capital structure, default, and owner consumption to manage firm risk, including how these choices change with risk aversion. We decompose an entrepreneur’s default decision into three elements: the fraction of firm debt; the potential reduction in personal consumption from losing the firm; and th...
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