1. //
  2. Start
  3. //
  4. Publications
  5. On entrepreneurial risk-taking and the m...
  6. Output formats
  7. //

On entrepreneurial risk-taking and the macroeconomic effects of financial constraints

Research output: Journal contributions › Journal articles › Research › peer-review

Standard

On entrepreneurial risk-taking and the macroeconomic effects of financial constraints. / Clemens, Christiane ; Heinemann, Maik.
In: Journal of Economic Dynamics and Control, Vol. 34, No. 9, 10.2010, p. 1610-1626.

Research output: Journal contributions › Journal articles › Research › peer-review

Harvard

Clemens, C & Heinemann, M 2010, 'On entrepreneurial risk-taking and the macroeconomic effects of financial constraints', Journal of Economic Dynamics and Control, vol. 34, no. 9, pp. 1610-1626. https://doi.org/10.1016/j.jedc.2010.06.015

APA

Clemens, C., & Heinemann, M. (2010). On entrepreneurial risk-taking and the macroeconomic effects of financial constraints. Journal of Economic Dynamics and Control, 34(9), 1610-1626. https://doi.org/10.1016/j.jedc.2010.06.015

Vancouver

Clemens C, Heinemann M. On entrepreneurial risk-taking and the macroeconomic effects of financial constraints. Journal of Economic Dynamics and Control. 2010 Oct;34(9):1610-1626. doi: 10.1016/j.jedc.2010.06.015

Bibtex

@article{1a0f3a5add9f41f7b7c09e0c641dfb46,
title = "On entrepreneurial risk-taking and the macroeconomic effects of financial constraints",
abstract = "This paper deals with credit market imperfections and idiosyncratic risks in a two-sector heterogeneous agent dynamic general equilibrium model of occupational choice. We focus especially on the effects of tightening financial constraints on macroeconomic performance, entrepreneurial risk-taking, and social mobility. Contrary to many models in the literature, our comparative static results cover a broad range for financial constraints, from an unrestrained to a perfectly constrained economy. We find substantial gains in output, welfare, and wealth equality associated with credit market improvements. The marginal gains from relaxing constraints are largest for empirically relevant debt-equity ratios. Interestingly, the entrepreneurship rate and social mobility respond non-monotonically to a change in the tightness of financial constraints. The results crucially depend on feedback effects in general equilibrium, where optimal firm sizes and the demand for credit are endogenously determined.",
keywords = "Economics, CGE, Occupational choic, Financial constraints, Wealth distribution",
author = "Christiane Clemens and Maik Heinemann",
year = "2010",
month = oct,
doi = "10.1016/j.jedc.2010.06.015",
language = "English",
volume = "34",
pages = "1610--1626",
journal = "Journal of Economic Dynamics and Control",
issn = "0165-1889",
publisher = "Elsevier B.V.",
number = "9",

}

RIS

TY - JOUR

T1 - On entrepreneurial risk-taking and the macroeconomic effects of financial constraints

AU - Clemens, Christiane

AU - Heinemann, Maik

PY - 2010/10

Y1 - 2010/10

N2 - This paper deals with credit market imperfections and idiosyncratic risks in a two-sector heterogeneous agent dynamic general equilibrium model of occupational choice. We focus especially on the effects of tightening financial constraints on macroeconomic performance, entrepreneurial risk-taking, and social mobility. Contrary to many models in the literature, our comparative static results cover a broad range for financial constraints, from an unrestrained to a perfectly constrained economy. We find substantial gains in output, welfare, and wealth equality associated with credit market improvements. The marginal gains from relaxing constraints are largest for empirically relevant debt-equity ratios. Interestingly, the entrepreneurship rate and social mobility respond non-monotonically to a change in the tightness of financial constraints. The results crucially depend on feedback effects in general equilibrium, where optimal firm sizes and the demand for credit are endogenously determined.

AB - This paper deals with credit market imperfections and idiosyncratic risks in a two-sector heterogeneous agent dynamic general equilibrium model of occupational choice. We focus especially on the effects of tightening financial constraints on macroeconomic performance, entrepreneurial risk-taking, and social mobility. Contrary to many models in the literature, our comparative static results cover a broad range for financial constraints, from an unrestrained to a perfectly constrained economy. We find substantial gains in output, welfare, and wealth equality associated with credit market improvements. The marginal gains from relaxing constraints are largest for empirically relevant debt-equity ratios. Interestingly, the entrepreneurship rate and social mobility respond non-monotonically to a change in the tightness of financial constraints. The results crucially depend on feedback effects in general equilibrium, where optimal firm sizes and the demand for credit are endogenously determined.

KW - Economics

KW - CGE

KW - Occupational choic

KW - Financial constraints

KW - Wealth distribution

UR - http://www.scopus.com/inward/record.url?scp=77956786783&partnerID=8YFLogxK

U2 - 10.1016/j.jedc.2010.06.015

DO - 10.1016/j.jedc.2010.06.015

M3 - Journal articles

VL - 34

SP - 1610

EP - 1626

JO - Journal of Economic Dynamics and Control

JF - Journal of Economic Dynamics and Control

SN - 0165-1889

IS - 9

ER -

Related by journal

Option-implied skewness: Insights from ITM-options

Mohrschladt, H. & Schneider, J. C., 01.10.2021, In: Journal of Economic Dynamics and Control. 131, 104227.

Research output: Journal contributions › Journal articles › Research › peer-review

Robust measurement of (heavy-tailed) risks: Theory and implementation

Schneider, J. C. & Schweizer, N., 01.12.2015, In: Journal of Economic Dynamics and Control. 61, p. 183-203 21 p.

Research output: Journal contributions › Journal articles › Research › peer-review

Cross-hedging minimum return guarantees: Basis and liquidity risks

Ankirchner, S., Schneider, J. C. & Schweizer, N., 04.2014, In: Journal of Economic Dynamics and Control. 41, p. 93-109 17 p.

Research output: Journal contributions › Journal articles › Research › peer-review

E-stability and stability of adaptive learning in models with private information

Heinemann, M., 01.12.2009, In: Journal of Economic Dynamics and Control. 33, 12, p. 2001-2014 14 p.

Research output: Journal contributions › Journal articles › Research › peer-review

Other publications by the same author(s)

Anmerkungen zur Krise und zur Krisenbewältigung durch die Wirtschaftspolitik

Heinemann, M., 2011, Mit der Krise leben?: Europäische Konflikte, innergesellschaftliche Verwerfungen, Perspektiven. Hannover: Offizin-Verlag, p. 45-62 15 p. (Kritische Interventionen; vol. 12).

Research output: Contributions to collected editions/works › Contributions to collected editions/anthologies › Research › peer-review

Convergence of adaptive learning and expectational stability: The case of multiple rational-expectations equilibria

Heinemann, M., 01.09.2000, In: Macroeconomic Dynamics. 4, 3, p. 263-288 26 p.

Research output: Journal contributions › Journal articles › Research › peer-review

Indeterminierte Gleichgewichte und Sunspots in dynamischen makroökonomischen Modellen

Heinemann, M., 2003, In: Jahrbuch für Wirtschaftswissenschaften. 53, 3, p. 315-340 26 p.

Research output: Journal contributions › Journal articles › Research › peer-review

Ist die empirische Makroökonomik eine wissenschaftliche Illusion?

Heinemann, M., Haslinger, F. & Breitung, J., 1993, Die ökonomische Wissenschaft und ihr Betrieb. Frankfurt/New York: Campus Verlag, p. 150-203 54 p. (Ökonomie und Gesellschaft; vol. 10).

Research output: Contributions to collected editions/works › Contributions to collected editions/anthologies › Research

Künstliche Experimente und Konjunkturforschung: Eine exemplarische Betrachtung des wissenschaftlichen Erkenntnisfortschritts

Heinemann, M., 1996, Experiments in Economics - Experimente in der Ökonomie. Frankfurt/New York: Campus Verlag, p. 273-295 23 p. (Ökonomie und Gesellschaft : Jahrbuch; vol. 13).

Research output: Contributions to collected editions/works › Contributions to collected editions/anthologies › Research

DOI

Recently viewed

Publications

  1. Intra-Individual Value Change in Adulthood
  2. Systematische modellbasierte Bestandsdimensionierung
  3. Degradation of β-blockers in hospital wastewater by means of ozonation and Fe2+/ozonation
  4. Activating an Integrative Mindset Improves the Subjective Outcomes of Value-Driven Conflicts
  5. Using authentic representations of practice in teacher education
  6. The analytical competency model to investigate the video-stimulated analysis of inclusive sciene education
  7. The rise and decline of regional power
  8. RECOVERING THE HISTORY OF A DEFEATED SOCIAL MOVEMENT
  9. Export diversification and income differences reconsidered
  10. Creating a Business Case for Sustainability
  11. Reconstructing the “biopiracy” debate from a justice perspective
  12. Planning for Sea Spaces I
  13. High-Load Squat Training Improves Sprinting Performance in Junior Elite-Level Soccer Players: A Critically Appraised Topic.
  14. Mythos
  15. Assessing the environmental fate of S-metolachlor, its commercial product Mercantor Gold® and their photoproducts using a water-sediment test and in silico methods
  16. Did Descriptive and Prescriptive Norms About Gender Equality at Home Change During the COVID-19 Pandemic? A Cross-National Investigation
  17. Organizational Practices for the Aging Workforce
  18. Testing for Economies of Scope in European Railways
  19. Metaphern zur Klärung biologischer Phänomene
  20. Scandinavia, Blacks in
  21. Environmental Indicators for Business
  22. Positiv, Positivität
  23. Der Sozialindex für Hamburger Schulen
  24. Data retention in the European Union
  25. Assisted colonization is a techno-fix
  26. Participation for Effective Environmental Governance
  27. Between re-production and re-presentation