HETEROGENEITY EFFECTS OF DEVELOPMENT FUNDING ON MICROENTERPRISES

Yuan Tian ()
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Yuan Tian: Boston University, U.S.A.

Journal of Economic Development, 2015, vol. 40, issue 3, 1-26

Abstract: This paper focuses on the heterogeneity of firm's characteristics on development funding. It develops a theoretical model under utility maximization framework with imperfect insurance and credit markets constraints, deriving the returns to capital determined by firm¡¯s size, structure and entrepreneur's utility form. Empirical evidence from Sri Lanka Microenterprises Project (2005-2010) shows that the returns vary across different quantiles of firm's profits and the ability/risk aversion of entrepreneur affects the returns significantly differently on the distribution of profits. It also summarizes the development funding policy and offers advice on policy evaluation in Sri Lanka.

Keywords: Microenterprises; Quantile Regression; Heterogeneity; Development Funding Policy (search for similar items in EconPapers)
JEL-codes: C21 O16 O53 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:40:y:2015:i:3:p:1-26

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