Aggregate productivity falls in recessions and rises in expansions. Several empirical studies suggest that the systematic behavior of lending standards, with laxer (tighter) standards applied during expansions (recessions), is responsible for reverting trends in aggregate productivity. We build a dynamic model that rationalizes these findings. Higher liquidity brought about by high levels of ca...

The most efficient labor market mechanism depends on the advantages of specialization, workers’ costs of switching between entrepreneurs, and the frequency with which needs change. Multilateral mechanisms are more efficient when specialization is more advantageous, when it is cheap for workers to switch between entrepreneurs, and when individual entrepreneurs cannot occupy a worker on a full-ti...

The paper investigates the relationship between bank interest rate margins and collateral for loans issued to new ventures. The analysis finds a convex U-shaped relationship. The results indicate that while provision of collateral initially reduces bank exposure to risk (through security, more optimal levels of capital and lower moral hazard among entrepreneurs) that beyond a point the positive...

The most efficient labor market mechanism depends on the advantages of specialization, workers’ costs of switching between entrepreneurs, and the frequency with which needs change. Multilateral mechanisms are more efficient when specialization is more advantageous, when it is cheap for workers to switch between entrepreneurs, and when individual entrepreneurs cannot occupy a worker on a full-ti...

In many industries, entrepreneurs are asked to undergo a process called “frugal innovation.” This process supports advances in technology that drive own spending and improve results or leave them static. ikewise, in the healthcare system, there is a shift occuring calling for a reduction in spending. Key to this shift ill be implementation of innovative devices brought orward by entrepreneurs. ...

What determines the quality of entrepreneurs? The article proposes a model of the interaction between individual workers decision to become entrepreneurs and employers efforts to keep their best workers and ideas. The main prediction from the model is that larger firms produce entrepreneurs of higher quality than smaller firms. Using novel and unique Norwegian data, I find that previous employe...

Empirical studies have shown that entrepreneurs earn, on average, less than the market wage for employees with otherwise similar characteristics. We examine whether having previously been self-employed is in itself a negative signal on the job market. In a field experiment where two applications of otherwise equally qualified individuals were sent for the same vacancies, we find that entreprene...

This paper is the first attempt to study the process and criteria used by entrepreneurs in evaluating venture capitalists. Selection process involves issues such as the time invested in gathering information, the sources of information, and the number of venture capitalists considered. Selection criteria are split into four groups: (1) Valuation; (2) Value-Added Services; (3) Reputational Facto...

the survival of rural communities depends on appropriate investments and creation of viable and sustainable job opportunities. rural entrepreneurship is a driving engine of job creation and economic growth in rural communities. when we speak of rural business success or longevity, it seems important to determine how rural entrepreneurs define success. for the past decades, profit, growth and in...

We take the view (advanced, among others, by Schumpeter) that new ideas are original combinations of existing elements. While many random combinations are useless, some represent combinations which ”...t” together, aggregating di¤erent components in a novel and functional way. Thus, in order to appraise an innovative idea it is necessary to have specialized experts examine whether each of its d...