Distinguishing Limited Liability from Moral Hazard in a Model of Entrepreneurship

By anna. paulson, Robert M. Townsend, Alexander Karaivanov. Journal of Political Economy, 2006

188 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/8b261aeeec067547c8ef384e0934f10c68f273ed

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Citations in the corpus

Entrepreneurship and structural economic transformation (2008, background): “Following Stiglitz and Weiss (1981) it has been realized that capital markets could provide inadequate finance to entrepreneurs due to moral hazard and limited liability problems (Paulson et al. 2006: 102).”
Recent developments in the economics of entrepreneurship (2008, background): “Along similar lines, Paulson et al. (2006) have shown that the presence of financial constraints does not establish grounds for a policy intervention and that, given the financial market imperfections, the existing set of contracts may be the optimal ones.”
Access to capital in rural Thailand: an estimated model of formal versus informal credit (2005, unknown): “This finding complements the work of Siamwalla et al. (1993) also in Thailand or Udry (1993) and Aryeetey (1997) in Africa.”
Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy (2015, background): “Similarly, Paulson et al. (2006) argue that moral hazard best fits the data in the more urban Central region of Thailand but not in the more rural Northeast.”
A Cross-Disciplinary Exploration of Entrepreneurship Research (2007, background): “…examined a broad range of institutional factors influencing entrepreneurship, including monetary and tax policies (Gentry & Hubbard, 2000; Kanbur, 1982), property rights (Johnson et al., 2002; Khan & Sokoloff, 2004), and the availability of capital (Caballero & Hammour, 1996; Paulson et al., 2006).”
Regional determinants of entrepreneurial start-ups in a developing country (2008, background): “However, despite the theoretical case for access to finance as an obstacle to start-ups, and the fact that in many surveys entrepreneurs report access to finance as a constraint, empirical evidence on finance as a constraint is at best mixed (Paulson et al. 2006, Munshi 2007).”
Financing Constraints and Entrepreneurship (2009, background): “Paulson, A., R. Townsend, and A. K. Karaivanov (2006), ‘Distinguishing limited liability from moral hazard in a model of entrepreneurship’, Journal of Political Economy, 114 (1), 100-44.”
Entrepreneurship and Financial Frictions: A Macrodevelopment Perspective (2015, methodology): “Paulson et al. (2006) use structural techniques on panel data in rural and semi-urban Thailand to distinguish whether entrepreneurs face frictions stemming from limited liability, moral hazard, or some combination.”