Publication Type
Journal Article
Version
acceptedVersion
Publication Date
11-2018
Abstract
We develop a model to evaluate the aggregate impact of college finance in an environment with entrepreneurship. The calibrated model captures the stylized fact that entrepreneurs with college are more common and more profitable in the United States. The calibration indicates this is mainly because higher labor earnings allow college‐educated agents to ameliorate credit constraints if and when they eventually become entrepreneurs. Changes in financing constraints on entrepreneurs can thus affect college attendance, and changes in financing constraints on college can affect entrepreneurship rates as well.
Keywords
college education, education subsidies, entrepreneurship, financing constraints
Discipline
Economic Theory | Entrepreneurial and Small Business Operations | Higher Education
Research Areas
Economic Theory
Publication
Journal of Money, Credit and Banking
Volume
51
Issue
7
First Page
1765
Last Page
1813
ISSN
0022-2879
Identifier
10.1111/jmcb.12584
Publisher
Wiley
Citation
SAMANIEGO, Roberto M. and SUN, Juliana Yu.
Entrepreneurship, college, and credit: The golden triangle. (2018). Journal of Money, Credit and Banking. 51, (7), 1765-1813.
Available at: https://ink.library.smu.edu.sg/soe_research/2233
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.
Additional URL
https://doi.org/10.1111/jmcb.12584
Included in
Economic Theory Commons, Entrepreneurial and Small Business Operations Commons, Higher Education Commons