G2TT
来源类型Discussion paper
规范类型论文
来源IDDP9831
DP9831 Market Size, Entrepreneurship, and Income Inequality
Kristian Behrens; Evgeny Zhelobodko
发表日期2014-02-16
出版年2014
语种英语
摘要We develop a monopolistic competition model with two sectors and heterogeneous agents who self-select into entrepreneurship, depending on entrepreneurial ability. The effect of market size on the equilibrium share of entrepreneurs crucially hinges on properties of the lower-tier utility function for differentiated varieties ? its elasticity of substitution and its Arrow-Pratt index of relative risk aversion. We show that the share of entrepreneurs, and the cutoff for self-selection into entrepreneurship, can increase or decrease with market size. The properties of the underlying ability distribution largely determine how income inequality changes with market size.
主题International Trade and Regional Economics
关键词entrepreneurship Heterogeneous agents Income inequality Market size Monopolistic competition
URLhttps://cepr.org/publications/dp9831
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/538667
推荐引用方式
GB/T 7714
Kristian Behrens,Evgeny Zhelobodko. DP9831 Market Size, Entrepreneurship, and Income Inequality. 2014.
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