Entrepreneurship and the Business Cycle
We study the cyclical pattern of entrepreneurial activity. Results across 22 OECD countries for the period 1972-2007 show that entrepreneurial activity is a leading indicator of the business cycle in a Granger-causality sense. This contradicts existing theoretical hypotheses which predict that entrepreneurship is pro-cyclical or not cyclical. We discuss the causes and implications of this finding which have immense policy relevance during the second economic crisis of the 21st century.
|business cycle, entrepreneurship|
|Business Fluctuations; Cycles (jel E32), Entrepreneurship (jel L26)|
|Tinbergen Institute Discussion Paper Series|
|Discussion paper / Tinbergen Institute|
Koellinger, Ph.D, & Thurik, A.R. (2009). Entrepreneurship and the Business Cycle (No. TI 09-032/3). Discussion paper / Tinbergen Institute. Tinbergen Institute. Retrieved from http://hdl.handle.net/1765/15599