Entrepreneurial Activity, Risk and the Business Cycle

Entrepreneurial Activity, Risk and the Business Cycle∗

This paper analyzes a model in which the risk associated with entrepreneurial activity implies that the amount of such activity is procyclical and results in both amplification and intertemporal propagation of productivity shocks. In the model risk averse agents choose between a riskless project and a risky project with higher expected return (‘the entrepreneurial activity’). Agents who choose ...

Entrepreneurial activity , risk , and the business cycle ∗ Adriano

This paper analyzes a model in which the risk associated with entrepreneurial activity implies that the amount of such activity is procyclical and results in amplification and intertemporal propagation of productivity shocks. In the model risk averse agents choose between a riskless project and a risky project with higher expected output (‘the entrepreneurial activity’). Agents who become entre...

Business Cycle Features In The Iranian Economy

Business - cycle consumption risk and asset prices ∗

We disaggregate consumption growth into components with different levels of persistence and show that a single business-cycle consumption factor can explain satisfactorily the differences in risk premia across book-to-market and size-sorted portfolios. We argue that accounting for persistence heterogeneity in consumption is important for interpreting cross-sectional risk compensations in financ...

Entrepreneurial Networks in International Business

Entrepreneurship is widely recognized as a key factor in economic growth [Leibenstein, 1968]. Historical studies of commercialization a d industrialization suggest that the speed of "take off' is higher when entrepreneurs in related lines of activity work well together [Grassby, 1995]. In the aggregate, ntrepreneurs may work better as a cooperative network than as a collection of competitive in...