Publication Type
Working Paper
Version
publishedVersion
Publication Date
4-2016
Abstract
We develop a model to evaluate the impact of college education finance on welfare, inequality and aggregate outcomes. Our model captures the stylized fact that entrepreneurs with college are more common and more profitable. Our calibration to US data suggests this is mainly because higher labor earnings allow college educated agents to ameliorate credit constraints when they become entrepreneurs. The welfare benefits of subsidizing education are greater than those of eliminating financing constraints on education because subsidies ameliorate the impact of financing constraints on would-be entrepreneurs.
Discipline
Behavioral Economics | Economic Theory | Entrepreneurial and Small Business Operations | Higher Education
Research Areas
Economic Theory
First Page
1
Last Page
51
Publisher
SMU Economics and Statistics Working Paper Series, Paper No. 08-2016
City or Country
Singapore
Citation
SAMANIEGO, Roberto M. and SUN, Juliana Yu.
Entrepreneurship, Education and Credit: The Golden Triangle. (2016). 1-51.
Available at: https://ink.library.smu.edu.sg/soe_research/1706
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Behavioral Economics Commons, Economic Theory Commons, Entrepreneurial and Small Business Operations Commons, Higher Education Commons
Comments
Published in Journal of Money, Credit and Banking, 2019, 51 (7), 1765-1813. https://doi.org/10.1111/jmcb.12584