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Housing Collateral and Entrepreneurship / Martin C. Schmalz, David A. Sraer, David Thesmar.
- Format:
- Book
- Author/Creator:
- Schmalz, Martin C.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w19680.
- NBER working paper series no. w19680
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2013.
- Summary:
- This paper shows that collateral constraints restrict entrepreneurial activity. Our empirical strategy uses variations in local house prices as shocks to the value of collateral available to individuals owning a house and controls for local demand shocks by comparing entrepreneurial activity of homeowners and renters operating in the same region. We find that an increase in collateral value leads to a higher probability of becoming an entrepreneur. Conditional on entry, entrepreneurs with access to more valuable collateral create larger firms and more value added, and are more likely to survive, even in the long run.
- Notes:
- Print version record
- November 2013.
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