This paper investigates how the illiquidity of entrepreneurial capital shapes investment dynamics and wealth inequality. The central question is whether entrepreneurship drives wealth heterogeneity or …
PublishedJournal of Monetary EconomicsPublished Oct 2025
Standard measures of capital allocative efficiency—based on the dispersion of the average revenue product of capital (ARPK)—are severely biased when capital utilization is endogenous. When utilization …