Abstract

http://ssrn.com/abstract=2149204
 


 



Entrepreneurship and the Political Economy of Growth


Peter G. Klein


University of Missouri, Division of Applied Social Sciences; Norwegian School of Economics, Department of Strategy and Management; University of Missouri, Truman School of Public Affairs; Mises Institute

December 1, 2011

The 4% Solution: How to Unleash the Economic Boom America Needs in the Twenty-First Century, Brendan Miniter, ed., Crown Business), Forthcoming

Abstract:     
Policymakers talk about entrepreneurship as a way of improving economic conditions in developing countries the way they used to talk about roads, dams, bridges, and other infrastructure projects. But what exactly is entrepreneurship? Is it simply self-employment or new-venture formation — a set of outcomes that can be measured, analyzed, and perhaps stimulated using the usual sorts of economic policy instruments — or a way of thinking or acting? This paper describes entrepreneurship not as a phenomenon, but as a behavior, that of judgmental decision-making under uncertainty, and examines the institutional environment for effective entrepreneurial judgment. It suggests that the best policy to encourage entrepreneurship is to allow an environment that encourages entrepreneurship to flourish — stable money, the rule of law, and free and open competition. It argues that government policy should not 1) create and exacerbate business cycles, 2) bail out failing enterprises, 3) focus on misleading aggregates, and 3) plan clusters of entrepreneurship and innovation.

Keywords: entrepreneurship, growth, political economy, institutional environment, Knightian uncertainty

JEL Classification: M13, O20

Accepted Paper Series


Not Available For Download

Date posted: September 20, 2012  

Suggested Citation

Klein, Peter G., Entrepreneurship and the Political Economy of Growth (December 1, 2011). The 4% Solution: How to Unleash the Economic Boom America Needs in the Twenty-First Century, Brendan Miniter, ed., Crown Business), Forthcoming. Available at SSRN: http://ssrn.com/abstract=2149204

Contact Information

Peter G. Klein (Contact Author)
University of Missouri, Division of Applied Social Sciences ( email )
135 Mumford Hall
Columbia, MO 65211
United States
573-882-7008 (Phone)
HOME PAGE: http://web.missouri.edu/~kleinp
Norwegian School of Economics, Department of Strategy and Management ( email )
Breiviksveien 40
N-5045 Bergen
Norway
University of Missouri, Truman School of Public Affairs ( email )
105 Middlebush Hall
Columbia, MO 65211
United States
Mises Institute ( email )
Auburn, AL
United States
Feedback to SSRN


Paper statistics
Abstract Views: 196
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.344 seconds