Ability-heterogeneity, entrepreneurship, and economic growth
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 522-541 |
| Journal / Publication | Journal of Economic Dynamics and Control |
| Volume | 34 |
| Issue number | 3 |
| Publication status | Published - Mar 2010 |
| Externally published | Yes |
Link(s)
Abstract
This paper develops an endogenous growth model of occupational choice with overlapping generations heterogeneous in entrepreneurial ability. While an increase in the number of entrepreneurs creates a growth-enhancing variety effect, the reduced overall quality of entrepreneurial ability retards growth. As a result, the number of entrepreneurs and output growth need not be positively related, in response to changes in the ability distribution. While cheaper financial operation and higher manufacturing productivity are both growth-enhancing, they have different effects on equilibrium factor prices and equilibrium financial markups. Additionally, the long-run growth consequences of subsidies to entrepreneurship and credit-market imperfections are studied. © 2009 Elsevier B.V. All rights reserved.
Research Area(s)
- Distribution and growth, Entrepreneurial ability, Occupational choice
Citation Format(s)
Ability-heterogeneity, entrepreneurship, and economic growth. / Jiang, Neville; Wang, Ping; Wu, Haibin.
In: Journal of Economic Dynamics and Control, Vol. 34, No. 3, 03.2010, p. 522-541.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
