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| Spiros Bougheas and Richard Upward |
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| ''Endogenous participation in imperfect labor and capital markets'' |
| ( 2013, Vol. 33 No.4 ) |
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| We introduce endogenous participation in an economy with labor and financial market frictions. Agents can choose to be workers or entrepreneurs or not to participate in any market. We examine how the transition rates between these three options are affected by productivity shocks (business cycle conditions) and by changes in the level of market frictions (cross-country institutional quality variations). |
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| Keywords: endogenous participation; labor market frictions; financial market frictions |
JEL: J6 - Mobility, Unemployment, and Vacancies: General
G3 - Corporate Finance and Governance: General |
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| Manuscript Received : Feb 04 2013 | | Manuscript Accepted : Oct 03 2013 |
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