Abstract
Develops a two-sector model of a small open economy in which the size of the entrepreneurial class is endogenous. It is shown that the entrepreneurial class is smaller under free trade than would be first-best optimal in the presence of efficient risk-sharing institutions such as stock markets. Nonetheless, there are potential gains from trade, and any protectionist policy that increases the number of entrepreneurs will have deleterious welfare consequences.-from Author
| Original language | English (US) |
|---|---|
| Pages (from-to) | 605-613 |
| Number of pages | 9 |
| Journal | Reprint Series - University of Stockholm, Institute for International Economic Studies |
| Volume | 250 |
| State | Published - 1984 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Environmental Science(all)
- Earth and Planetary Sciences(all)