Entrepreneurial Activities: A Microeconomic Analysis

26 Pages Posted: 11 Jul 2008

See all articles by Vincy Fon

Vincy Fon

George Washington University - Department of Economics

Ying Lowrey

Tsinghua University

Date Written: July, 10 2008


People have different preferences for performing entrepreneurial activities. These differences can be influenced by actions of the state. Special attention is paid to examine the individual behavior in choosing employed work or entrepreneurial activities. Individual supply of entrepreneurial work is aggregated. Equilibrium entrepreneurial activity is given by the balance of aggregate supply and aggregate demand. States can promote more aggregate supply of entrepreneurial activity through engaging institutional devices, or they can make institutional changes to increase aggregate demand for entrepreneurial activity through domestic and global markets. The effects of appropriate institutional settings on entrepreneurial activities over time are highlighted.

Keywords: Entrepreneurship, Entrepreneurial Activities, Institutional Contraints

JEL Classification: L26, D01, D02, D00

Suggested Citation

Fon, Vincy and Lowrey, Ying L., Entrepreneurial Activities: A Microeconomic Analysis (July, 10 2008). Available at SSRN: https://ssrn.com/abstract=1158147 or http://dx.doi.org/10.2139/ssrn.1158147

Vincy Fon (Contact Author)

George Washington University - Department of Economics ( email )

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Ying L. Lowrey

Tsinghua University ( email )

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