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Consumption-Leisure Preference Structure: A New Explanation of the Evans-Jovanovic Results for Entrepreneurial Choice

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  • Nobuyuki Harada

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  • Kyoichi Kijima
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    Abstract

    This paper extends Evans and Jovanovic’s (1989) (EJ) model to explicitly consider the latent entrepreneur’s consumption-leisure preference structure, and shows that an increase in his or her assets encourages entrepreneurial activity. This result indicates that EJ’s finding may hold without the assumption of liquidity constraints. Copyright Springer 2005

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    File URL: http://hdl.handle.net/10.1007/s11187-005-4300-x
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 24 (2005)
    Issue (Month): 4 (05)
    Pages: 423-427

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    Handle: RePEc:kap:sbusec:v:24:y:2005:i:4:p:423-427

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    Web page: http://www.springerlink.com/link.asp?id=100338

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    Cited by:
    1. Kameliia Petrova, 2012. "Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 39(2), pages 473-493, September.
    2. Takanori Adachi & Takao Asano, 2011. "Entrepreneurial Choice and Knightian Uncertainty with Borrowing Constraints," KIER Working Papers 803, Kyoto University, Institute of Economic Research.

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