Fonseca, Raquel; Michaud, Pierre-Carl; Sopraseuth, Thepthida - 2021
We study the effects of liquidity constraints and start-up costs on the relationship between wealth and the fraction of …. The model predicts that, with liquidity constraints, the probability of entering entrepreneurship is an increasing … predictions can be tested on cross-sectional data with exogenous variation in liquidity constraints (e.g. access to credit) and …