nep-ent 2005-02-20 papers

on Entrepreneurship

Issue of 2005‒02‒20
two papers chosen by
Marcus Dejardin
Facultés Universitaires Notre-Dame de la Paix

A network-based approach on opportunity recognition By Arenius, P.; De Clercq, D.
Weird Ties? Growth, Cycles and Firm Dynamics in an Agent-Based Model with Financial-Market Imperfections By Mauro Napoletano, Domenico Delli Gatti, Giorgio Fagiolo, Mauro Gallegati

A network-based approach on opportunity recognition

By:	Arenius, P.; De Clercq, D.
Abstract:	This paper argues that individuals differ in terms of their perception of opportunities because of the differences between the networks they are embedded in. We focus on two aspects of individuals’ embeddedness in networks, that is, (1) individuals’ belonging to residential areas that are more or less likely to be characterized by network cohesion, and (2) individuals’ differential access to network contacts based on the level of human capital they hold. Our analyses show that the nature of one’s residential area influences the perception of entrepreneurial opportunities. Further, we find a positive effect for education, i.e., people with a higher educational level are more likely to perceive entrepreneurial opportunities compared to those with a lower educational level.
Keywords:	Note
Date:	2005–01–17
URL:	http://d.repec.org/n?u=RePEc:vlg:vlgwps:2004-23&r=ent

Weird Ties? Growth, Cycles and Firm Dynamics in an Agent-Based Model with Financial-Market Imperfections

By:	Mauro Napoletano, Domenico Delli Gatti, Giorgio Fagiolo, Mauro Gallegati
Abstract:	This paper studies how the interplay between technological shocks and financial variables shapes the properties of macroeconomic dynamics. Most of the existing literature has based the analysis of aggregate macroeconomic regularities on the representative agent hypothesis (RAH). However, recent empirical research on longitudinal micro data sets has revealed a picture of business cycles and growth dynamics that is very far from the homogeneous one postulated in models based on the RAH. In this work, we make a preliminary step in bridging this empirical evidence with theoretical explanations. We propose an agent-based model with heterogeneous firms, which interact in an economy characterized by financial-market imperfections and costly adoption of new technologies. Monte-Carlo simulations show that the model is able jointly to replicate a wide range of stylised facts characterizing both macroeconomic time-series (e.g. output and investment) and firms' microeconomic dynamics (e.g. size, growth, and productivity).
Keywords:	Financial Market Imperfections, Business Fluctuations, Economic Growth, Firm Size, Firm Growth, Productivity Growth, Agent-Based Models.
URL:	http://d.repec.org/n?u=RePEc:ssa:lemwps:2005/03&r=ent

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