Entrepreneurship and the Business Cycle
Erasmus School of Economics; Erasmus Research Institute of Management (ERIM); University of Amsterdam Business School
Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute
April 20, 2009
Tinbergen Institute Discussion Paper No. TI 09-032/3
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 possible causes and policy implications of this finding.
Number of Pages in PDF File: 20
Keywords: Entrepreneurship, Business cycle
JEL Classification: L26, E32
Date posted: May 13, 2009
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