Small Business Economics

, Volume 24, Issue 2, pp 187–191 | Cite as

Consumption-Leisure Preference Structure: A New Explanation of the Evans-Jovanovic Results for Entrepreneurial Choice

  • Nobuyuki Harada
  • Kyoichi Kijima


This paper extends Evans and Jovanovic’s (1989) (EJ) model to explicitly consider the latent entrepreneur’s consumption-leisure preference structure, and shows that an increase in his or her assets encourages entrepreneurial activity. This result indicates that EJ’s finding may hold without the assumption of liquidity constraints.


Industrial Organization Entrepreneurial Activity Preference Structure Liquidity Constraint Entrepreneurial Choice 
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Copyright information

© Springer 2005

Authors and Affiliations

  1. 1.Graduate School of Systems and Information EngineeringUniversity of TsukubaTsukubaJapan
  2. 2.Department of Value and Decision ScienceTokyo Institute of TechnologyTokyoJapan

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