ENTREPRENEURIAL DECISIONS AND LIQUIDITY CONSTRAINTS

Authors
HOLTZEAKIN D JOULFAIAN D ROSEN HS
Citation
D. Holtzeakin et al., ENTREPRENEURIAL DECISIONS AND LIQUIDITY CONSTRAINTS, The Rand journal of economics, 25(2), 1994, pp. 334-347
Citations number
21
Categorie Soggetti
Economics
Journal title
The Rand journal of economics → ACNP
ISSN journal
07416261
Volume
25
Issue
2
Year of publication
1994
Pages
334 - 347
Database
ISI
SICI code
0741-6261(1994)25:2<334:EDALC>2.0.ZU;2-A
Abstract
Using a matched sample of federal estate and personal income tax retur ns, we examine how the receipt of an inheritance affects an individual 's decision to become an entrepreneur. Our results suggest that the si ze of the inheritance has a substantial effect on both the probability of becoming an entrepreneur and the amount of capital employed in the new enterprise. These findings are consistent with the presence of li quidity constraints.