Investment composition and productivity with heterogeneous entrepreneurs

► The effects of financier patience on total factor productivity and macro development are studied. ► I show a channel that could make rising financier patience counterproductive. ► Heterogeneity in entrepreneurial willingness to invest long-term determines the effects of financier patience. ► When entrepreneurs are heterogeneous financier patience generates a sea-saw effect: Rising financier patience retards capital deepening while stimulating the allocation efficiency of capital. ► When heterogeneity is large enough retardation of capital deepening effect dominates the rise in allocation efficiency of capital.