Marimon, Ramon; Quadrini, Vincenzo - Department of Economics and Business, Universitat … - 2005
We study how barriers to business start-up affect the investment in knowledge capital when contracts are not … enforceable. Barriers to business start-up lower the competition for knowledge capital and, in absence of commitment, reduce the … are consistent with cross-country evidence showing that the cost of business start-up is negatively correlated with the …