Sticking it Out: Entrepreneurial Survival and Liquidity Constraints

Holtz‐Eakin, Douglas; Joulfaian, David; Rosen, Harvey S.

doi:10.1086/261921

Cited by 722 publications

(187 citation statements)

References 0 publications

Supporting

Mentioning

144

Contrasting

Unclassified

Order By: Relevance

“…Our previous paper (Lusardi and Mitchell, 2006) used a 13 See also Gentry and Hubbard (2004). 14 Holtz-Eakin et al (1994) also emphasize the many tax incentives in business ownership. special module covering a subset of 2004 HRS respondents and demonstrated that only a small fraction (less than a one-third) of older respondents ever tried to figure out how much they needed to save for retirement.…”

Section: Planning and Wealthmentioning

confidence: 99%

Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

Lusardi

Mitchell

2007

Journal of Monetary Economics

1,556

213

View full text Add to dashboard Cite

Section: Planning and Wealthmentioning

confidence: 99%

Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

Lusardi

Mitchell

2007

Journal of Monetary Economics

1,556

213

View full text Add to dashboard Cite

“…Although the choice of modeling agents as infinitely lived dynasties does not allow to analyze interesting life-cycle pattern of savings, however, it implicitly captures the large intergenerational transfers of wealth that are observed in the economy. As shown by Holtz-Eakin, Joulfaian, & Rosen (1994), these intergenerational transfers are important in affecting the choice to start a new business.…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship, Saving, and Social Mobility

Quadrini¹

2000

Review of Economic Dynamics

522

377

View full text Add to dashboard Cite

This paper examines entrepreneurship in order to analyze, first, the degree to which the opportunity to start or own a business affects the household's saving behavior and the implication of this behavior for the distribution of wealth and, second, the relationship between the extent of entrepreneurship in the economy and socioeconomic mobility, that is, the movement of families across wealth classes over time.First, a number of stylized facts based on data from the Panel Study of Income Dynamics and the Survey of Consumer Finances are outlined. They show relevant differences in asset holdings and wealth mobility between entrepreneurs and workers. Second, a dynamic general equilibrium model with an explicit formalization of the entrepreneurial choice is developed. Through the modeling of the entrepreneurial activities, the model generates a concentration of wealth similar to the one observed in the U. S. economy and it replicates the main patterns of wealth mobility in which entrepreneurs experience higher upward mobility than workers. (JEL E21,D31,J23)

show abstract

“…Consistently with the presence of liquidity constraints, the authors find that inheritances or gifts increase the probability of self-employment. Similarly Holtz-Eakin et al (1994a, 1994b, using individual income tax return data from the United States, report that those who receive an inheritance are more likely to enter and to stay in entrepreneurship.…”

Section: Liquidity Constraints As a Possible Explanationmentioning

confidence: 99%

Risk Attitudes and Private Business Equity

Fossen¹

2012

Oxford Handbooks Online

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Abstract:Why do people engage in entrepreneurship and commit large parts of their personal wealth to their business, despite comparably low returns and high risk? This paper connects several streams of literature to shed some light on this puzzle and suggests possible future research avenues. Key insights from the literature are that entrepreneurs may operate in imperfect financial markets and that entrepreneurs are less risk-averse than the rest of the population. A focus of this paper is, therefore, on the role of heterogeneous risk attitudes in entrepreneurial decisions, specifically portfolio choice and the entry and exit decisions. Nonpecuniary benefits of entrepreneurship, such as being independent in the workplace, also contribute to an explanation of entrepreneurial behavior.

show abstract

Sticking it Out: Entrepreneurial Survival and Liquidity Constraints

Cited by 722 publications

References 0 publications

Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

Baby Boomer retirement security: The roles of planning, financial literacy, and housing wealth

Entrepreneurship, Saving, and Social Mobility

Risk Attitudes and Private Business Equity

Contact Info

Product

Resources

About