nep-ent New Economics Papers
on Entrepreneurship
Issue of 2018‒04‒23
ten papers chosen by
Marcus Dejardin
Université de Namur

  1. The Reallocation Myth By Chang-Tai Hsieh; Peter J. Klenow
  2. Resource Misallocation in European Firms: The Role of Constraints, Firm Characteristics and Managerial Decisions By Gorodnichenko, Yuriy; Revoltella, Debora; Svejnar, Jan; Weiss, Christoph T.
  3. Collateral Damage? Decreasing House Prices and Entrepreneurial Lending By Remco Mocking; Benedikt Vogt; Wolter Hassink
  4. The Elasticity of Taxable Income for the Self-Employed: Heterogeneity across Reforms and Income Levels By Nicole Bosch; Henk-Wim de Boer
  5. The entrepreneurial activity using GEM data: evidence for Spain (national and regional) and for Europe By Velilla, Jorge
  6. Firm Age, Size, and Employment Dynamics: Evidence from Japanese firms By LIU Yang
  7. Capital structure determinants and adjustment speed: An empirical analysis of Dutch SMEs By Remco Mocking; Joep Steegmans
  8. Spécificités des sources de connaissances pour l'innovation environnementale des PME By Amandine Pinget; Rachel Bocquet
  9. Le rôle de l'organisation du travail des capital investisseurs dans la construction de relations interpersonnelles avec les entrepreneurs By Claire Champenois; Michel Devigne; François-Régis Puyou
  10. Review of Empirical Studies of Factors of Entrepreneurial Activity By Barinova, Vera; Zemtsov, Stepan; Tsareva, Yulia

  1. By: Chang-Tai Hsieh; Peter J. Klenow
    Abstract: There is a widely held view that much of growth in the U.S. can be attributed to reallocation from low to high productivity firms, including from exiting firms to entrants. Declining dynamism — falling rates of reallocation and entry/exit in the U.S. — have therefore been tied to the lackluster growth since 2005. We challenge this view. Gaps in the return to resources do not appear to have narrowed, suggesting that allocative efficiency has not improved in the U.S. in recent decades. Reallocation can also matter if it is a byproduct of innovation. However, we present evidence that most innovation comes from existing firms improving their own products rather than from entrants or fast-growing firms displacing incumbent firms. Length: 26 pages
    Date: 2018–04
  2. By: Gorodnichenko, Yuriy (University of California, Berkeley); Revoltella, Debora (European Investment Bank); Svejnar, Jan (Columbia University); Weiss, Christoph T. (European Investment Bank)
    Abstract: Using a new survey, we show that the dispersion of marginal products across firms in the European Union is about twice as large as that in the United States. Reducing it to the US level would increase EU GDP by more than 30 percent. Alternatively, removing barriers between industries and countries would raise EU GDP by at least 25 percent. Firm characteristics, such as demographics, quality of inputs, utilization of resources, and dynamic adjustment of inputs, are predictors of the marginal products of capital and labor. We emphasize that some firm characteristics may reflect compensating differentials rather than constraints and the effect of constraints on the dispersion of marginal products may hence be smaller than has been assumed in the literature. We also show that cross-country differences in the dispersion of marginal products are more due to differences in how the business, institutional and policy environment translates firm characteristics into outcomes than to the differences in firm characteristics per se.
    Keywords: marginal products, resource allocation, firm-specific factors, economic growth
    JEL: O12 O47 O52 D22 D24
    Date: 2018–03
  3. By: Remco Mocking (CPB Netherlands Bureau for Economic Policy Analysis); Benedikt Vogt (CPB Netherlands Bureau for Economic Policy Analysis); Wolter Hassink
    Abstract: We study the effect of housing collateral on entrepreneurial lending in the Netherlands. This residential collateral channel is especially relevant for sole proprietors for whom there is no legal distinction between the owner and the business. We make use of unique administrative data on outstanding bank credit of all Dutch sole proprietorships in the period 2007 - 2012. Our estimates indicate that home owning entrepreneurs were hit less severe in the times of crisis than renting entrepreneurs. Relative to renters, during the economic crisis, the incidence of having outstanding bank credit decreased 2% percent less for home owners. Home owners also experience a 40 basis points weaker increase in costs of credit compared to renters. Within the group of home owners higher LTVs only go along with higher prices during the crisis relative to lower LTVs.
    JEL: G23 R2 R31 L26
    Date: 2017–05
  4. By: Nicole Bosch (CPB Netherlands Bureau for Economic Policy Analysis); Henk-Wim de Boer (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: This paper studies the causal relation between effective marginal tax rates for the self-employed and their taxable income using panel data for the period 1999-2012. This period contains three tax reforms that we use to identify the elasticity of taxable income (ETI). We estimate an ETI of 0.3 for the self-employed. Individuals respond stronger to the major tax reform in 2001 than to two smaller reforms in 2005 and 2007. We reveal signifi cant heterogeneity in ETI across the income distribution and occupational choice. Contrary to earlier studies, the ETI is higher for self-employed with a lower income than for self-employed with a higher income. We also find that self-employed respond much stronger to financial incentives than wage earners. However, there is little heterogeneity in responses for demographic subgroups: women only have a slightly higher ETI than men, and the ETI is roughly similar across educational levels. We carefully assess our instruments using recent insights in the ETI literature. Instruments based on lagged income are not preferable for our sample of self-employed who experience high variation in income. And the choice of sampling weights - base-year income or lagged income - matters in our analysis which again demonstrates the high heterogeneity across income levels.
    JEL: H24 H31 J22
    Date: 2017–06
  5. By: Velilla, Jorge
    Abstract: This work uses different sources of data from the Global Entrepreneur Monitor to show a descriptive and comparative analysis of the different dimensions of the entrepreneurial activity, in the Spanish regions, and at international level. I also study the individual determinants of the entrepreneurial activity in Spain, and Europe, using bootstrapping techniques to avoid overfitted results. My results indicate that entrepreneurial levels in Spain are below the average of European countries, and also below the levels of United States, Canada, and Australia. However, the determinants of entrepreneurship appear to be similar in all the regions studied.
    Keywords: Entrepreneurship; Spain; Europe; Global Entrepreneurship Monitor; GEM Data
    JEL: L26
    Date: 2018–03–28
  6. By: LIU Yang
    Abstract: This study examines the effects of firm age and size on employment dynamics based on large scale panel data from Japan. It contributes to the literature by examining age and size effects on firm-level job creation and job destruction, which have not been clear in previous studies. The empirical results indicate that firm age has significantly negative effects on both job creation and destruction rates; however, firm size has a significantly negative effect on job creation while it has a significantly positive effect on job destruction. The theoretical background of this study is the standard theory on job creation and destruction in labor economics theories, which considers that job creation is determined by expected profit from newly created jobs, and job destruction is determined by whether the job is expected to be profitless. The age and size of firms affect their expected profit and therefore lead to effects on the behaviors of job creation and destruction. Finally, the results are similar for manufacturing firms and service firms.
    Date: 2018–02
  7. By: Remco Mocking (CPB Netherlands Bureau for Economic Policy Analysis); Joep Steegmans (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: This paper presents empirical evidence of both the determinants and the adjustment speed of capital structure of small and medium-sized enterprises (SMEs) in the Netherlands. Using an administrative panel data set of the period 2000-2014, containing 153,923 fi rms, we estimate a partial adjustment model through system GMM. The results show that firm size and pro tability reduce debt to assets ratios, while tangible assets, depreciation, and marginal taxes increase them. Growth of assets is either statistically or economically insigni cant. The estimated adjustment speed parameter is 0.748, indicating that the adjustment process is particularly slow in the Netherlands.
    JEL: G24 G28 F23 H25 H26 H87
    Date: 2017–08
  8. By: Amandine Pinget (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Anchored in a knowledge-based view, this research aims to highlight SMEs’ specificities related to knowledge sources for environmental innovations that remain understudied compared to technological innovations. Results show that knowledge sources, which are essential for environmental innovation of SMEs, differ from those used for technological innovations. SMEs introducing environmental innovation rely more on external than internal knowledge sources. This research leads to the formulation
    Abstract: Basada en la perspectiva knowledge-based, esta investigación se pretende destacar las especificidades de las fuentes de conocimientos que contribuyen al desarrollo de las innovaciones medioambientales, poco estudiadas, a diferencia de las innovaciones tecnológicas. Nuestros resultados demuestran que las fuentes de conocimientos fundamentales para las innovaciones medioambientales de las PYME difieren de aquellas movilizadas por las innovaciones tecnológicas. Las PYME que introducen innovaciones medioambientales recurren más a fuentes externas de conocimientos, que internas. Esta investigación nos conduce a formular varias recomendaciones a las PYME y a los actores a cargo de su desarrollo.
    Abstract: Ancrée dans la perspective knowledge-based, cette recherche vise à mettre en évidence les spécificités des sources de connaissances des PME pour les innovations environnementales qui restent peu étudiées comparativement aux innovations technologiques. Les résultats montrent que les sources de connaissances, essentielles pour les innovations environnementales des PME, diffèrent de celles mobilisées pour les innovations technologiques. Les PME qui introduisent des innovations environnementales font davantage appel aux sources externes qu'internes de connaissances. Cette recherche conduit à formuler des recommandations utiles aux PME et aux acteurs en charge de leur développement.
    Keywords: Environnemental innovation,Technological innovation,Knowledge sources,SMEs,innovación medioambiental,innovación tecnológica,fuentes de conociemento,PYME,Innovation environnementale,Innovation technologique,Sources de connaissances,PME
    Date: 2017
  9. By: Claire Champenois (Audencia Recherche - Audencia Business School); Michel Devigne (Mines Nantes - Mines Nantes); François-Régis Puyou (Audencia Recherche - Audencia Business School)
    Date: 2017
  10. By: Barinova, Vera (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Zemtsov, Stepan (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Tsareva, Yulia (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Despite active support of small and medium-sized business, its development indicators in Russia lag far behind those in developed countries, including due to the peculiarities of the institutional environment. Therefore, it is important to study the factors that affect entrepreneurial activity. The main goal of this work was a detailed analysis and generalization of the relevant empirical studies. As a result, the influence of the following factors was revealed: individual characteristics of entrepreneurs, institutional conditions, human capital, accumulated wealth and agglomeration effects. The obtained results will make it possible to make informed decisions in the sphere of supporting small and medium-sized businesses.
    Date: 2018–03

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