Housing Collateral and Entrepreneurship
Martin C. Schmalz,
David A. Sraer and
David Thesmar
No 19680, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
This paper shows that collateral constraints restrict entrepreneurial activity. Our empirical strategy uses variations in local house prices as shocks to the value of collateral available to individuals owning a house and controls for local demand shocks by comparing entrepreneurial activity of homeowners and renters operating in the same region. We find that an increase in collateral value leads to a higher probability of becoming an entrepreneur. Conditional on entry, entrepreneurs with access to more valuable collateral create larger firms and more value added, and are more likely to survive, even in the long run.
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-ent and nep-ure
Note: CF PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)
Published as MARTIN C. SCHMALZ & DAVID A. SRAER & DAVID THESMAR, 2017. "Housing Collateral and Entrepreneurship," The Journal of Finance, vol 72(1), pages 99-132.
Downloads: (external link)
http://www.nber.org/papers/w19680.pdf (application/pdf)
Related works:
Journal Article: Housing Collateral and Entrepreneurship (2017) 
Working Paper: Housing Collateral and Entrepreneurship (2014) 
Working Paper: Housing Collateral and Entrepreneurship (2014)
Working Paper: Housing Collateral and Entrepreneurship (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19680
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19680
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().