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dc.contributor.authorSchäfer, Dorotheaen_US
dc.contributor.authorTalavera, Oleksandren_US
dc.date.accessioned2009-01-28T15:47:45Z-
dc.date.available2009-01-28T15:47:45Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/18529-
dc.description.abstractIn this paper we investigate whether small-scale businesses face financial constraints that affect their survival. We develop a model of moral hazard in which financial constraints arise endogenously. The model predicts that higher private assets relax financial constraints and have a positive effect on the firm's probability of survival. We test this proposition using German Socio-Economic Panel (GSOEP) data, which cover the period 1984{2004. The release from financial constraints is measured by inheritance. The empirical analysis confirms that the entrepreneur has a higher propensity to stay in business when she inherits capital. This effect is particularly strong for entrepreneurs that switch from self-employment into wage employment. These results are consistent with hypothesis that financial frictions have a perceptible impact on bankruptcy among small business firms.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDIW-Diskussionspapiere 636en_US
dc.subject.jelG30en_US
dc.subject.jelJ20en_US
dc.subject.jelL10en_US
dc.subject.ddc330en_US
dc.subject.keywordEntrepreneurshipen_US
dc.subject.keywordsurvivalen_US
dc.subject.keywordfinancial constraintsen_US
dc.titleSmall-Scale Business Survival and Inheritance: Evidence from Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn519891546en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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