Entrepreneurial Decisions and Liquidity Constraints
Volume: Volume 25, No. 2
Issue: Summer 1994
Pages: pp. 334-347
Authors: Douglas Holtz-Eakin, David Joulfaian, and Harvey S. Rosen
Title: Entrepreneurial Decisions and Liquidity Constraints
Abstract: Using a matched sample of federal estate and personal income tax returns, we examine how the receipt of an inheritance affects an individual's decision to become an entrepreneur and the amount of capital employed in the new enterprise. These findings are consistent with the presence of liquidity constraints.
JEL Classification:
Entrepreneurship (M130)
Capitalist Economic Systems: Market Economies (0510)