The dynamics of entrepreneurship: Hysteresis, business cycles and government policy

Empirical Economics

Volumn 43, Issue 3, 2012, Pages 1239-1261

  Congregado, Emilio ^a   Golpe, Antonio A ^a   Parker, Simon C ^b  

^a UNIVERSITY OF HUELVA   (Spain)

^b UNIVERSITY OF WESTERN ONTARIO   (Canada)

Author keywords

Business cycles; Entrepreneurship; Hysteresis; Self employment; Time series models; Unobserved components model

Indexed keywords

BUSINESS CYCLE; ENTREPRENEUR; FUTURE PROSPECT; HYSTERESIS; INDUSTRIAL DEVELOPMENT; MACROECONOMICS; SELF EMPLOYMENT; TIME SERIES ANALYSIS;

SPAIN; UNITED STATES;

EID: 84870341085     PISSN: 03777332     EISSN: None     Source Type: Journal    
DOI: 10.1007/s00181-011-0516-6     Document Type: Article

References (77)

1. Acs ZJ, Audretsch DB (1990) Innovation and small firms. MIT Press, Cambridge.
2. Assarson B, Janson P (1998) Unemployment persistence: the case of Sweden. Appl Econ Lett 5(1): 25-29.
3. Audretsch DB (2002) Growth regimes over time and space. Reg Stud 36: 113-124.
4. Audretsch DB (2003) Entrepreneurship policy and the strategic management of places. In: Hart DM (eds) The emergence of entrepreneurship policy. Cambridge University Press, Cambridge, pp 20-38.
5. Audretsch DB, Acs ZJ (1994) New firm start-ups, technology and macroeconomics fluctuations. Small Bus Econ 6: 439-449.
6. Audretsch DB, Keilbach M (2004) Entrepreneurship capital and economic performance. Reg Stud 38: 949-959.
7. Bai J, Perron P (1998) Estimating and testing linear models with multiple structural changes. Econometrica 66: 47-78.
8. Bai J, Perron P (2003a) Computation and analysis of multiple structural change models. J Appl Econom 18: 1-22.
9. Bai J, Perron P (2003b) Critical values for multiple structural change tests. Econom J 6: 72-78.
10. Baker D, Glyn A, Howell D, Schmitt J (2005) Labor market institutions and unemployment: assessment of the cross-country evidence. In: Howell DR (eds) Fighting unemployment: the limits of free market orthodoxy. University Press, Oxford.
11. Barlevy G (2007) On the cyclicality of research and development. Am Econ Rev 97: 1131-1164.
12. Baumol WJ, Schilling MA, Wolff EN (2009) The superstar inventors an entrepreneurs: how were they educated?. J Econ Manage Strategy 18(3): 711-728.
13. Ben-Ner A (1988) The life-cycle of worker-owned firms in market economies: a theoretical analysis. J Econ Behav Organ 10: 287-313.
14. Bendick M, Egan ML (1987) Transfer payment diversion for small business development: British and French experience. Ind Lab Relat Rev 40: 528-542.
15. Blanchard OJ, Summers LH (1986) Hysteresis and the European unemployment problem. NBER Macroecon Annu 1: 15-78.
16. Boot A (1992) Why hang on to losers? Divestitures and takeovers. J Financ 47(4): 1401-1423.
17. Bruce D, Mohsin M (2006) Tax policy and entrepreneurship: new time series evidence. Small Bus Econ 26: 409-425.
18. Burke A, FitzRoy F, Nolan M (2002) Self-employment wealth and job creation: the roles of gender, non-pecuniary motivation and entrepreneurial ability. Small Bus Econ 19(3): 255-270.
19. Caballero RJ, Hammour ML (1994) The cleansing effect of recessions. Am Econ Rev 84: 1350-1368.
20. Camarero M, Tamarit C (2004) Hysteresis vs. natural rate of unemployment: new evidence for OECD countries. Econ Lett 84: 413-417.
21. Camarero M, Carrion-I-Silvestre JL, Tamarit C (2006) Testing for hysteresis in unemployment in OECD countries: new evidence using stationarity panel tests with breaks. Oxf Bull Econ Stat 68: 167-182.
22. Camarero M, Carrion-I-Silvestre JL, Tamarit C (2008) Unemployment hysteresis in transition countries: evidence using stationarity panel tests with breaks. Rev Dev Econ 12: 620-635.
23. Caner M, Hansen BE (2001) Threshold autoregression with a unit root. Econometrica 69(6): 1555-1596.
24. Clark PK (1989) Trend reversion in real output and unemployment. J Econom 40: 15-32.
25. Carrasco R (1999) Transitions to and from self-employment in Spain: an empirical analysis. Oxf Bull Econ Stat 61: 315-341.
26. Carree M, Thurik AR (2008) The lag structure of the impact of business ownership on economic performance in OECD countries. Small Bus Econ 30: 101-110.
27. Carroll R, Holtz-Eakin D, Rider M, Rosen HS (2000) Income taxes and entrepreneurs use of labor. J Lab Econ 18(2): 324-351.
28. Cowling M, Mitchell P (1997) The evolution of UK self-employment: a study of government policy and the role of the macroeconomy. Manch Sch 65: 427-442.
29. Cowling M, Mitchell P, Taylor M (2004) Job creators. Manch Sch 72: 601-617.
30. Di Tella R, MacCulloch R (2006) Europe versus America: institutional hysteresis in a simple normative model. J Public Econ 90: 2161-2186.
31. Dixit A (1989) Entry and exit decisions under uncertainty. J Polit Econ 97: 620-638.
32. Dixit A, Rob R (1994) Switching costs and sectoral adjustments in general equilibrium with uninsured risk. J Econ Theory 62: 48-69.
33. Elliot U, Rothenberg TJ, Stock JH (1996) Efficient tests for an autoregressive unit root. Econometrica 64: 813-836.
34. Eurostat (2009a) Eurostat new release: Euroindicators, 153/2009, European Commission, Brussels.
35. Eurostat (2009b) Labor market policies (LMP)-expenditure and participants 2007. Data in Focus Issue No. 23/2009, European Commission, Brussels.
36. Fonseca R, López-García P, Pissarides CA (2001) Entrepreneurship, start-up costs and employment. Eur Econ Rev 45: 692-705.
37. Francois P, Lloyd-Ellis H (2003) Animal spirits through creative destruction. Am Econ Rev 93(3): 530-550.
38. Fritsch M, Mueller P (2007) The persistence of regional new business formation-activity over time - assessing the potential of policy promotion programs. J Evol Econ 17: 299-315.
39. Fritsch M, Mueller P (2008) The effect of new business formation on regional development over time: the case of Germany. Small Bus Econ 30: 15-29.
40. Grant D (1996) The political economy of new business formation across the American states, 1970-1985. Soc Sci Quart 77: 28-42.
41. Haltiwanger J (2006) Entrepreneurship and job growth. In: Audretsch DB, Strom R, Acs Z (eds) Entrepreneurship, growth and public policy. Cambridge University Press, Cambridge.
42. Hart, DM (eds) (2003) The emergence of entrepreneurship policy. Cambridge University Press, Cambridge.
43. Hansen BE (1999) Testing for linearity. J Econ Surv 13(5): 551-576.
44. Henley A (2004) Self-employment status: the role of state dependence and initial circumstances. Small Bus Econ 22: 67-82.
45. Iversen J, Jorgensen R, Malchow-Moller N (2008) Defining and measuring entrepreneurship. Found Trends Entrepreneurship 4(1).
46. Jaeger A, Parkinson M (1990) Testing for hysteresis in unemployment rates: an unobserved component approach. Empir Econ 15: 185-198.
47. Jaeger A, Parkinson M (1994) Some evidence on hysteresis in unemployment rates. Eur Econ Rev 38: 329-342.
48. Karamé F (1999) Unemployment persistence: the hysteresis assumption revisited. Mimeo, EUREQua.
49. Klepper S (1996) Entry, exit, growth and innovation over the product life cycle. Am Econ Rev 86: 562-583.
50. Landier A (2004) Entrepreneurship and the stigma of failure. Mimeo, Stern School of Business, New York University.
51. Layard R, Nickell S, Jackman R (1991) Unemployment, macroeconomic performance and the labor market. Oxford University Press, Oxford.
52. León-Ledesma M, McAdam P (2004) Unemployment, hysteresis and transition. Scot J Polit Econ 51: 1-24.
53. Lerner J (1999) The government as venture-capitalist: the long-run impact of the SBIR program. J Bus 72: 285-318.
54. Logeay C, Tober S (2005) Hysteresis and Nairu in the Euro Area. IMK, Germany, WP 4/2005.
55. Lo M, Zivot E (2001) Threshold cointegration and nonlinear adjustment to the law of one price. Macroecon Dyn 5(4): 533-576.
56. Lucas RE (1978) On the size distribution of business firms. Bell J Econ 9: 508-523.
57. Ng S, Perron P (2001) Lag length selection and the construction of unit root tests with good size and power. Econometrica 69: 1529-1554.
58. OECD: (2010) SMEs, entrepreneurship and innovation. Organization for Economic Cooperation and Development,.
59. O'kean JM, Menudo JM (2008) Entrepreneurial tools. In: Congregado E (eds) Measuring entrepreneurship. Springer, New York, pp 21-38.
60. Papell D, Murray C, Ghiblawi H (2000) The structure of unemployment. Rev Econ Stat 82: 309-315.
61. Parker SC (1996) A time series model of self-employment under uncertainty. Economica 63: 459-475.
62. Parker SC (2005) Explaining regional variations in entrepreneurship as multiple occupational equilibria. J Reg Sci 45: 829-850.
63. Parker SC (2009) The economics of entrepreneurship. Cambridge University Press, Cambridge.
64. Parker SC, Robson MT (2004) Explaining international variations in self-employment: evidence from a panel of OECD countries. South Econ J 71: 287-301.
65. Pérez-Alonso A, Di Sanzo S (2011) Unemployment and hysteresis: a nonlinear unobserved components approach. Stud Nonlinear Dyn Econom 15(1): article 2.
66. Pérotin V (2006) Entry, exit and the business cycle: are cooperatives different?. J Comp Econ 34: 295-316.
67. Proietti T (2004) Some reflections on trend-cycle decompositions with correlated components. Economics Working Papers ECO2002/23, European University Institute.
68. Rampini AA (2004) Entrepreneurial activity, risk and the business cycle. J Monet Econ 51: 555-573.
69. Raurich X, Sala H, Sorolla V (2006) Unemployment, growth, and fiscal policy: new insights on the hysteresis hypothesis. Macroecon Dyn 10: 285-316.
70. Røed K (1997) Hysteresis in unemployment. J Econ Surv 11: 389-418.
71. Salemi MK (1999) Estimating the natural rate of unemployment and testing the natural rate hypothesis. J Appl Econom 14(1): 1-25.
72. Shleifer A (1986) Implementation cycles. J Polit Econ 94(6): 1163-1190.
73. Sinclair TM (2009) The relationship between permanent and transitory movements in U. S. output and the unemployment rate. J Money Credit Banking 41(2-3): 529-542.
74. Stock JH (1999) A class of tests for intregration and cointegration. In: Engle RF, White H (eds) Cointegration, causality and forecasting. A festschrift in honour Clive W. J. Granger. Oxford University Press, Oxford, pp 135-167.
75. van Stel A, Carree M, Thurik AR (2005) The effect of entrepreneurial activity on national economic growth. Small Bus Econ 24: 311-321.
76. Wennekers S, van Stel A, Carree M, Thurik AR (2008) The relation between entrepreneurship and economic development: is it U-shaped? EIM Research Report, H200824.
77. Zivot E, Andrews DWK (1992) Further evidence on the great crash, the oil-price shock and the unit root hypothesis. J Bus Econ Stat 10: 251-270.