MARC Record from Library of Congress

LEADER: 02349cam a22003257a 4500
001 2006615508
003 DLC
005 20130601093428.0
007 cr |||||||||||
008 061002s2005 ilu sb f000 0 eng
010 $a 2006615508
040 $aDLC$cDLC
050 00 $aHG2401
100 1 $aCagetti, Marco.
245 10 $aEntrepreneurship, frictions, and wealth$h[electronic resource] /$cMarco Cagetti, Mariacristina De Nardi.
260 $a[Chicago, Ill.] :$bFederal Reserve Bank of Chicago,$c[2005]
490 1 $aWorking paper series ;$vWP-2005-09
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 10/2/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"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 presence of borrowing constraints. We construct a model that matches wealth inequality very well, for both entrepreneurs and non- entrepreneurs. We 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"--Federal Reserve Bank of Chicago web site.
650 0 $aEntrepreneurship$xEconometric models.
650 0 $aWealth$xEconometric models.
650 0 $aSaving and investment$xEconometric models.
700 1 $aDe Nardi, Mariacristina.
710 2 $aFederal Reserve Bank of Chicago.$bResearch Department.
830 0 $aWorking paper series (Federal Reserve Bank of Chicago. Research Department : Online) ;$vWP-2005-09.
856 40 $uhttp://www.chicagofed.org/economic_research_and_data/wp_abstract.cfm?pubsID=731