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Full-Text Articles in Industrial Organization
Estimating The Benefits And Costs Of Forming Business Partnerships, Jungho Lee
Estimating The Benefits And Costs Of Forming Business Partnerships, Jungho Lee
Research Collection School Of Economics
I estimate a matching model of business‐partnership formation to quantify the relative importance of productivity gains, financing gains, and the coordination failure of effort provision (moral hazard) among partners. Productivity gains account for 61% of the gain from the observed partnerships. For partners in the first quartile of the wealth distribution, however, financing accounts for 93% of the gain. The cost of moral hazard corresponds to 42% of the entire gain from partnerships. A loan policy specifically targeting partnerships is less effective in improving welfare than a conventional loan policy that provides loans to individual entrepreneurs.
Essays On Entrepreneurial Financing, Ye Jia
Essays On Entrepreneurial Financing, Ye Jia
Electronic Thesis and Dissertation Repository
This thesis consists of three chapters on the impact of different government policies on entrepreneurial financing. In the first chapter, by quantitatively evaluating the impact of different personal bankruptcy regimes on entrepreneurship in a life-cycle model with occupational choices, I conclude that personal bankruptcy law affect entrepreneurship mainly through the insurance effect rather than the borrowing cost effect. In addition, I find that variations in bankruptcy regimes have very different impacts on households with different abilities, and changes in the length of post-bankruptcy punishments have the largest impact on entrepreneurship compared to variations in other dimensions of the bankruptcy regime. …