The Dynamics of Entrepreneurship: Hysteresis, Business Cycles and Government Policy
University of Huelva
Antonio A. Golpe
University of Huelva; University of Huelva - Economics and Statistics
Simon C. Parker
University of Western Ontario; Durham University - Department of Economics and Finance; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 4093
This paper estimates an unobserved components model to explore the macro dynamics of entrepreneurship in Spain and the US. We ask whether entrepreneurship exhibits hysteresis, defined as a macro dynamic structure in which cyclical fluctuations have persistent effects on the natural rate of entrepreneurship. We find evidence of hysteresis in Spain, but not the US, while in both countries business cycle output variations significantly affect future rates of entrepreneurship. The article discusses implications of the findings for the design of entrepreneurship policies.
Number of Pages in PDF File: 32
Keywords: hysteresis, unobserved components model, time series models, business cycles, self-employment, entrepreneurship
JEL Classification: C32, E32, J24working papers series
Date posted: April 7, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.391 seconds