Arbeitspapier
A General Equilibrium Theory of Occupational Choice under Optimistic Beliefs about Entrepreneurial Ability
This paper studies the impact of optimism on occupational choice using a general equilibrium framework. The model shows that optimism has four main qualitative effects: it leads to a misallocation of talent, drives up input prices, raises the number of entrepreneurs, and makes entrepreneurs worse off. We calibrate the model to match U.S. manufacturing data. This allows us to make quantitative predictions regarding the impact of optimism on occupational choice, input prices, the returns to entrepreneurship, and output. The calibration shows that optimism can explain the empirical puzzle of the low mean returns to entrepreneurship compared to average wages.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 7300
- Klassifikation
-
Wirtschaft
General Equilibrium and Disequilibrium: General
Taxation and Subsidies: Efficiency; Optimal Taxation
Human Capital; Skills; Occupational Choice; Labor Productivity
Entrepreneurship
- Thema
-
general equilibrium
entrepreneurship
optimism
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Dell'Era, Michele
Opromolla, Luca David
Santos-Pinto, Luís
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Dell'Era, Michele
- Opromolla, Luca David
- Santos-Pinto, Luís
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2018
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