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on Entrepreneurship |
| By: | Juergen Antony (University of Augsburg, Department of Economics) |
| Abstract: | This paper develops an endogenous growth model based on the idea of new combinations of input factors as a growth mechanism. The model integrates the idea of several technologies used simultaneously in producing final output. Innovations are of the horizontal and vertical type and in addition of the type of new technologies which can be combined with existing ones. All types of innovations are endogenous and the occurrence of a new technology has stochastic elements as well. This leads to endogenous dynamics in the growth rates of final output production. |
| Keywords: | endogenous growth, new combinations |
| JEL: | O41 O31 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:aug:augsbe:0290&r=ent |
| By: | Keith Blackburn; Rashmi Sarmah |
| Abstract: | We study the effects of red tape and corruption in a model of occupational choice, entry regulation and imperfect capital markets. Red tape is the set of rules and regulations that private agents are obliged to comply with in order to engage in entrepreneurial activity. Corruption is the payment of bribes to public officials for the purpose of circumventing red tape. Capital market imperfections are the asymmetries of information between borrowers and lenders about the returns to entrepreneurship. We show that both red tape and corrup- tion deter entrepreneurial activity, but that only corruption affects financial market outcomes, including the probability of bankruptcy and the costs of verifying bankruptcy claims. The existence of corruption compounds the effects of both aggregate uncertainty and capital market frictions, each of which compounds the effects of corruption. We examine the interactions between red tape and corruption when both are endogenous to the bureaucratic process. |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:man:cgbcrp:82&r=ent |
| By: | Joachim Wagner (Institute of Economics, University of Lüneburg) |
| Abstract: | Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (H3) Surviving firms from an entry cohort were more productive than non-surviving firms from this cohort in the start year. Results for Spain support all three hypotheses. This paper replicates the study using a unique newly available panel data sets for all manufacturing plants from Germany (1995 – 2002). Again, all three hypotheses are supported empirically. |
| Keywords: | Exports, Entry, exit, productivity |
| JEL: | L11 L60 |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:44&r=ent |
| By: | Willem, A.; Van den Broeck, H. |
| Abstract: | The aim of the paper is to explore the learning mode of small business owners, from a theoretical stance, and based on empirical evidence. We distinguish between the required learning mode, the actual learning mode and the supported learning mode. Data were collected using the focus group method in a very heterogeneous sample of Belgian small business owners. The results indicate several gaps between the required, actual and supported learning modes, of which many are due to unawareness of learning needs and lack of reflective learning among small business owners. The data also indicate among others that solutions to fill learning gaps proposed in the literature are not applicable to all owners, e.g. not all owners are able to learn through networks. |
| Keywords: | Belgium, learning capability, learning mode, learning gaps, learning process, learning support, reflective learning, research paper, small business owners, focus groups |
| Date: | 2007–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2007-9&r=ent |
| By: | Giulio Bottazzi; Giovanni Dosi; Giorgio Fagiolo; Angelo Secchi |
| Abstract: | In this paper we study a class of evolutionary models of industrial agglomeration with local positive feedbacks, which allow for a wide set of empirically-testable implications. Their roots rest in the Generalized Polya Urn framework. Here, however, we build on a birth-death process over a finite number of locations and a finite population of firms. The process of selection among production sites that are heterogeneous in their ?intrinsic attractiveness? occurs under a regime of dynamic increasing returns depending on the number of firms already present in each location. The general model is presented together with a few examples of small economies which help to illustrate the properties of the model and characterize its asymptotic behavior. Finally, we discuss a number of empirical applications of our theoretical framework. The basic model, once taken to the data, is able to empirically disentangle the relative strength of technologically-specific agglomeration drivers (affecting differently firms belonging to different industrial sectors in each location) from site-specific geographical forces (horizontally acting upon all sectors in each location). |
| Keywords: | Industrial Location, Agglomeration, Dynamic Increasing Returns, Markov Chains, Polya Urns. |
| Date: | 2007–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2007/06&r=ent |
| By: | Jacques Garnier (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II]); Delphine Mercier (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II]) |
| Abstract: | A partir de l'étude de deux cas choisis dans l'Aire Métropolitaine Marseillaise, la communication met en évidence le fait que les logiques spatailes de l'innovation , tout en se situant dans le cadre de systèmes nationaux ou locaux, articulent de manière dynamique des instances globales (les mondes), des instances locales (ls projets) et des instances intermédares régionaux (les institutions). |
| Keywords: | Espaces ; Innovation |
| Date: | 2007–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00132673_v1&r=ent |
| By: | Alex Coad (Centre d'Economie de la Sorbonne) |
| Abstract: | Complicated neoclassical models predict that if investment is sensitive to current financial performance, this is a sign that something is "wrong" and is to be regarded as a problem for policy. Evolutionary theory, on the other hand, refers to the principle of "growth of the fitter" to explain investment-cash flow sensitives as the workings of a healthy economy. In particular, I attack the neoclassical assumption of managers maximizing shareholder-value. Such an assumption is not a helpful starting point for empirical studies into firm growth. One caricature of neoclassical theory could be "Assume firms are perfectly efficient. Why aren't they getting enough funding ?", whereas evolutionary theory considers that firms are forever struggling to grow. This essay highlights how policy guidelines can be framed by the initial modelling assumptions, even though these latter are often chosen with analytical tractability in mind rather than realism. |
| Keywords: | Financial constraints, firm growth, evolutionary theory, neoclassical theory, investment. |
| JEL: | L21 G30 |
| Date: | 2007–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:r07008&r=ent |