Behrens, Kristian; Pokrovsky, Dmitry; Zhelobodko, Evgeny - C.E.P.R. Discussion Papers - 2014
entrepreneurship, depending on entrepreneurial ability. The effect of market size on the equilibrium share of entrepreneurs crucially … Arrow-Pratt index of relative risk aversion. We show that the share of entrepreneurs, and the cutoff for self-selection into … entrepreneurship, can increase or decrease with market size. The properties of the underlying ability distribution largely determine …