Evidence on Entrepreneurs in the United States: Data from the 1989-2004 Survey of Consumer Finances

19 Pages Posted: 11 Nov 2007

See all articles by Mariacristina De Nardi

Mariacristina De Nardi

Federal Reserve Bank of Chicago; University College London, Economics Dpt.; National Bureau of Economic Research (NBER) - Public Economics

Phil Doctor

Federal Reserve Bank of Chicago

Spencer D. Krane

Federal Reserve Bank of Chicago - Economic Research

Abstract

Using data from the Federal Reserve Board's Survey of Consumer Finances, the authors examine characteristics of entrepreneurs and the businesses they run. Their analysis confirms that business owners are important sources of saving and wealth creation in the U.S. and that they are less risk averse than other wealthy households. This discounts the notion that the wealth of entrepreneurs disproportionately reflects a buildup of precautionary balances to guard against financial risk.

Keywords: entrepreneurship, saving, borrowing constraints, precautionary saving, risk aversion, Entrepreneurship, Macroeconomics, Consumption: Saving, Production, Employment, and Investment, Personal Income, Wealth, and their Distributions, Portfolio Choice,

Suggested Citation

De Nardi, Mariacristina and De Nardi, Mariacristina and Doctor, Phil and Krane, Spencer D., Evidence on Entrepreneurs in the United States: Data from the 1989-2004 Survey of Consumer Finances. Economic Perspectives, Vol. 31, No. 4, 2007, Available at SSRN: https://ssrn.com/abstract=1028750

Mariacristina De Nardi (Contact Author)

University College London, Economics Dpt. ( email )

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National Bureau of Economic Research (NBER) - Public Economics ( email )

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HOME PAGE: http://www.nber.org/~denardim

Phil Doctor

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

Spencer D. Krane

Federal Reserve Bank of Chicago - Economic Research ( email )

230 South LaSalle Street
Chicago, IL 60604-1413
United States
312-322-2382 (Phone)

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