Arbeitspapier
The Capital Market
This paper offers an account of the occupational choice among wage work, self-employment and entrepreneurship which contrasts with the "Knightian" one based on risk attitudes. As shown by example, the latter can lead to perverse results. We propose a model in which imperfect capital markets arising from costly output verification cause the cost of capital to decline with an agent's wealth. Employment contracts, which require costly labor monitoring are then viewed as a substitute for financial contracts. The prevalence of employment contracts (as distinguished from self-employment) then depends on (1) how effective is the labor monitoring technology as a substitute for output verification in the capital market; and (2) how unequal is the distribution of wealth.
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper ; No. 951
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Newman, Andrew F.
- Ereignis
-
Veröffentlichung
- (wer)
-
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
- (wo)
-
Evanston, IL
- (wann)
-
1991
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Newman, Andrew F.
- Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
Entstanden
- 1991
Ähnliche Objekte (12)
Social capital and the labor market
Behind the 2008 Capital Market Collapse
Managerial Capital and the Market for CEOs
Climate alpha and the global capital market
Market structure and the cost of capital
International risk tolerance, capital market failure and capital flows to emerging markets
Emerging market capital flows: The role of fund manager portfolio allocation
The Influence of Capital Market Integration on Production and Market Structures
Human capital dynamics and the U.S. labor market
What happened to the transatlantic capital market relations?
The Optimal Resource-Capital Ratio and Market Structure
Capital requirements, risk shifting and the mortgage market
Social capital and the labor market
Behind the 2008 Capital Market Collapse
Managerial Capital and the Market for CEOs
Climate alpha and the global capital market
Market structure and the cost of capital
International risk tolerance, capital market failure and capital flows to emerging markets
Emerging market capital flows: The role of fund manager portfolio allocation
The Influence of Capital Market Integration on Production and Market Structures
Human capital dynamics and the U.S. labor market
What happened to the transatlantic capital market relations?
The Optimal Resource-Capital Ratio and Market Structure
Capital requirements, risk shifting and the mortgage market
Social capital and the labor market
Behind the 2008 Capital Market Collapse
Managerial Capital and the Market for CEOs
Climate alpha and the global capital market
Market structure and the cost of capital
International risk tolerance, capital market failure and capital flows to emerging markets
Emerging market capital flows: The role of fund manager portfolio allocation
The Influence of Capital Market Integration on Production and Market Structures
Human capital dynamics and the U.S. labor market
What happened to the transatlantic capital market relations?
The Optimal Resource-Capital Ratio and Market Structure