nep-ure New Economics Papers
on Urban and Real Estate Economics
Issue of 2005‒09‒02
two papers chosen by
Steve Ross
University of Connecticut

  1. WHY SO MANY LOCAL ENTREPRENEURS? By Claudio Michelacci; Olmo Silva
  2. Search in the formation of large networks: How random are socially generated networks? By Jackson, Matthew O.; Rogers, Brian W.

  1. By: Claudio Michelacci; Olmo Silva (CEMFI, Centro de Estudios Monetarios y Financieros)
    Abstract: We document that the fraction of entrepreneurs who work in the region where they were born is significantly higher than the corresponding fraction for dependent workers. This difference is more pronounced in more developed regions and positively related to the degree of local financial development. Frims created by locals are more valuable and bigger (in terms of capital and employment), operate with more capital intensive technologies, and are able to obtain greater financing per unit of capital invested, than firms created by non-locals. This evidence suggests that there are so many local entrepreneurs because locals can better exploit the financial opportunities available in the region where they were born. This can help explaining how local financial development cause presistent disparities in entrepreneurial activity, technology, and income.
    Keywords: Entreprenurship, economic and financial development, social capital.
    JEL: J23 O12 O16 Z13
    Date: 2005–05
  2. By: Jackson, Matthew O.; Rogers, Brian W.
    Keywords: networks, network formation, power laws, scale-free networks, small worlds, search
    Date: 2005–03

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