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on Entrepreneurship |
| By: | Marius A. K. Ring |
| Abstract: | Whether imposing higher taxes on business owners adversely affects business activity by constraining investment and inducing capitalist flight is a central question in the ongoing debate on how to tax the ultra wealthy. To shed new light, I exploit a series of related Norwegian reforms during 2021–2024 that increased dividend tax rates, removed migration-related capital gains tax loopholes, and nearly doubled the effective marginal tax rate on business wealth. These reforms spurred international debate and, allegedly, an “exodus” of Norwegian billionaires (Financial Times, 2023). While I document clear effects on migration, these responses are concentrated among the top 0.1% of the wealth distribution and mostly confined to 2022 and 2023. My results indicate that at most 100 individuals left due to the reforms. I find no evidence of significant outmigration or reduced inflows of startup founders or inventors. I estimate that absent any outmigration, wealth tax revenues would have increased by 75% from 2021 to 2024. Reform-driven outmigration lowers the revenue gain to 71.5%. My findings further show that outmigrating owners’ firms remain economically active and do not reduce investment. In a broader set of analyses, I examine whether business outcomes are affected, regardless of whether owners outmigrate, since firms may reduce investment both due to liquidity constraints or distortions to owners’ savings decisions. I compare firms owned by Norwegian individuals subject to the wealth tax with firms owned by foreigners and other tax-exempt entities. By merging historical ownership data from Orbis with the Norwegian shareholder register, I perform these analyses on both Norwegian and foreign-domiciled firms. Across settings, I find no evidence that Norwegian-owned firms pay out more dividends or invest less after the reforms, nor is there any evidence that the reform induced more bankruptcies. These findings indicate that the short-run economic costs of wealth taxation, in terms of migration and firm investment, are more limited than the public debate implies. |
| JEL: | H0 H2 H3 H31 H32 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35854 |
| By: | Davide Arnaudo (Bank of Italy); Vincenzo Cuciniello (Bank of Italy); Giorgio Gobbi (Bank of Italy); Federico Guerra (Bank of Italy); Federico Labianca (Bank of Italy); Valentina Nigro (Bank of Italy); Sara Pinoli (Bank of Italy); Massimiliano Rigon (Bank of Italy); Paola Rossi (Bank of Italy); Federico Maria Signoretti (Bank of Italy); Pietro Tramontano (Bank of Italy) |
| Abstract: | This paper analyses the Italian private equity and venture capital market. Although total investment more than doubled between 2015 and 2025, the Italian market remains less developed than those of the other main European economies. Private equity investment is strongly oriented towards technology- and knowledge-intensive sectors, with significant participation by foreign funds. The public sector plays a prominent role in fundraising by Italian operators, whereas the contribution of private institutional investors remains relatively limited. Compared with firms in the same sector, size class and geographical area, private equity target firms are larger, more profitable and better capitalized; after turning to private equity, they record faster growth in total assets, employment, and investment, particularly in intangible assets. The further development of private capital markets in Italy could be fostered by a greater involvement of private investors and a wider availability of patient capital to support firms' growth and innovation. |
| Keywords: | private equity, venture capital, firm growth |
| JEL: | G23 G24 L25 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:bdi:opques:qef_1061_26 |
| By: | Javier Donna (University of Miami-Rimini Center for Economic Analysis); E. Mina Guler (University of Miami) |
| Abstract: | A federal court blocked JetBlue’s acquisition of Spirit Airlines in January 2024 to protect consumers who relied on Spirit’s low fares. Spirit failed anyway and ceased operations in May 2026. We ask whether the prohibition protected consumers. Using DB1B data for 2022–2025, we estimate the effect of Spirit’s exit across the 1, 427 routes it served. The 5th and 10th percentile fares rise by 8.6 and 5.8 log points; mean and median fares are unaffected. Where a carrier entered, the bottom is unaffected and mean fares fall. Theharm comes from exit without replacement, which entry policy does not reach. |
| Keywords: | Ultra-low-cost carriers; Entry and exit; Merger enforcement; Failing firm defense; Fare distribution; Antitrust |
| JEL: | L93 L41 L13 L51 K21 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:aoz:wpaper:409 |
| By: | Mabiso, Athur; Toguem, Robinson; Rosi, Alessandro; Mastroeni, Andrea; Pinca, Vittoria |
| Abstract: | The Youth Agropastoral Entrepreneurship Promotion Programme (AEP-Youth) in Cameroon was implemented to improve livelihood and food security outcomes for young agropastoral entrepreneurs. Implemented from 2015 to 2023 across four regions, the project overcame delays caused by administrative challenges, the COVID-19 pandemic and regional instability. The project’s holistic approach focused on youth business incubators offering technical training, mentorship and start-up support, including interest-free loans, productive grants and tailored financial products. The support combined start-up kits, productive credit and improved access to microfinance via a refinancing mechanism. The investments in rural infrastructure and market linkages aimed to boost the commercial viability of youth agro-pastoral businesses through trade fairs, alliances and improved connections to external markets. This impact assessment employed an ex-post quasi-experimental design, with primary household-level data collected in November and December 2023 supplemented by secondary GIS data on climatic and environmental conditions. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:ags:unadia:413153 |
| By: | Will Aarons; Asani Sarkar |
| Abstract: | There is little consensus on the effect of AI adoption on employment. Economy-wide measures of pay and headcount have moved little even as AI adoption has spread rapidly, yet narrower measures document declining hiring for workers at the start of their careers or in AI-exposed occupations. In this post, we revisit this topic for U.S. small businesses. We use data from the 2025 Small Business Credit Survey (SBCS) to examine the twelve-month-forward employment and revenue expectations of AI users. We find that firms currently using AI are significantly more likely than non-users to expect increased employment and revenues over the next year, even after accounting for firm and owner characteristics and location. Revenue expectations are most optimistic for AI users that report facing operational challenges in utilizing technology. |
| Keywords: | artificial intelligence (AI); small business; employment; revenues |
| JEL: | O3 L2 D2 |
| Date: | 2026–10–08 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:103899 |