Entrepreneurship and the Business Cycle

Tinbergen Institute Discussion Paper No. TI 09-032/3

20 Pages Posted: 13 May 2009  

Philipp Koellinger

Erasmus School of Economics; Erasmus Research Institute of Management (ERIM); University of Amsterdam Business School

Roy Thurik

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

Date Written: April 20, 2009

Abstract

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.

Keywords: Entrepreneurship, Business cycle

JEL Classification: L26, E32

Suggested Citation

Koellinger, Philipp and Thurik, Roy, Entrepreneurship and the Business Cycle (April 20, 2009). Tinbergen Institute Discussion Paper No. TI 09-032/3. Available at SSRN: https://ssrn.com/abstract=1403867 or http://dx.doi.org/10.2139/ssrn.1403867

Philipp Koellinger (Contact Author)

Erasmus School of Economics ( email )

Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

University of Amsterdam Business School ( email )

Roetersstraat 18
Amsterdam, 1018WB
Netherlands

Roy Thurik

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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