Does Entrepreneurship Promote Growth? A Model of Occupational Choice with Risk-Attitude Heterogeneous Agents

2009 ◽  
Author(s):  
Neville Nien-Huei Jiang ◽  
Ping Wang ◽  
Haibin Wu
Keyword(s):  
Occupational Choice ◽  
Heterogeneous Agents ◽  
Risk Attitude

Risicoattitude en beroepskeuze van schoolverlaters

2012 ◽  
Vol 28 (2) ◽  
Author(s):  
Didier Fouarge ◽  
Ben Kriechel ◽  
Thomas Dohmen
Keyword(s):  
Occupational Choice ◽  
Labour Force ◽  
Risk Attitude ◽  
Risk Attitudes ◽  
Financial Risks ◽  
Representative Survey ◽  
College And University ◽  
Earnings Risk ◽  
Large Representative

The role of risk attitude in the occupational choice of school leavers The role of risk attitude in the occupational choice of school leavers This article studies the role of risk attitudes in the occupational choice. It replicates the study by Bonin, Dohmen, Falk, Huffman and Sunde (2007) for Dutch graduates from high school, college and university. We use a validated scale to measure risk attitudes of young individuals in a large representative survey of school leavers (the ROA School Leavers Survey) around the time that they start their labour market career. We relate these preferences to the earnings risk for the occupations they choose to work in. The occupational earnings risk is derived from large administrative earnings data from Statistics Netherlands (CBS) which is matched to the Labour Force Survey. The analyses show that our measure of risk attitude is significantly related to actually taking financial risks. They also show that young entrants who are risk seekers are significantly more likely to start their careers in occupations that are characterized by a high earnings risk.

THE EFFECTS OF HIGH BANKING SPREADS IN AN INFORMAL ECONOMY

2019 ◽  
pp. 1-23
Author(s):  
Giovanni T. Merlin ◽  
Vladimir K. Teles
Keyword(s):  
Incomplete Markets ◽  
Informal Sector ◽  
Informal Economy ◽  
Occupational Choice ◽  
Heterogeneous Agents ◽  
Distributional Effects ◽  
Positive Effects ◽  
Credit Frictions ◽  
Heterogeneous Agents Model ◽  
Choice Setting

We investigate the aggregate and distributional effects of banking spreads in an economy with informality. We build a heterogeneous agents model with incomplete markets, credit frictions, and a rich occupational choice setting, in which informality is an option for both employers and workers. The main finding is that reductions in spreads for formal firms increase wages, output, and welfare but have a deleterious impact on unemployment and inequality. Dropping spreads for informal firms lead to reduction in inequality indicators at the expense of consumption and welfare. By calibrating the model for Brazil, we also find that a hypothetical extinction of the informal sector can be harmful for poor agents, but combined with a spread reduction, it can generate strong positive effects on output and welfare.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

Sign in / Sign up

Export Citation Format

Share Document