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

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  • Emilio Congregado

    ()

  • Antonio Golpe

    ()

  • Simon Parker

    ()

Abstract

This article estimates two unobserved components models to explore the macrodynamics of entrepreneurship in Spain and the USA. We ask whether entrepreneurship exhibits hysteresis, defined as a macrodynamic structure in which the cyclical component of entrepreneurship has persistent effects on the natural rate of entrepreneurship. We find evidence of hysteresis in Spain, but not the USA, while in Spain business cycle output variations significantly affect future rates of entrepreneurship. The article discusses implications of the findings for the design of entrepreneurship policies. Copyright Springer-Verlag 2012

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 43 (2012)
Issue (Month): 3 (December)
Pages: 1239-1261

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Handle: RePEc:spr:empeco:v:43:y:2012:i:3:p:1239-1261

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Keywords: Hysteresis; Unobserved components model; Time series models; Business cycles; Self-employment; Entrepreneurship; C32; J23; M13;

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Citations

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Cited by:
  1. Fritsch, Michael & Kritikos, Alexander S. & Pijnenburg, Katharina, 2013. "Business Cycles, Unemployment and Entrepreneurial Entry: Evidence from Germany," IZA Discussion Papers 7852, Institute for the Study of Labor (IZA).
  2. Gohmann, Stephan F. & Fernandez, Jose M., 2014. "Proprietorship and unemployment in the United States," Journal of Business Venturing, Elsevier, vol. 29(2), pages 289-309.
  3. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
  4. Klapper, Leora & Love, Inessa & Randall, Douglas, 2014. "New firm registration and the business cycle," Policy Research Working Paper Series 6775, The World Bank.
  5. Bianchi, Milo, 2012. "Financial Development, Entrepreneurship, and Job Satisfaction," Economics Papers from University Paris Dauphine 123456789/5067, Paris Dauphine University.
  6. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2013. "Cycle économique et comportement entrepreneurial sur données régionales françaises," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201332, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  7. Emilio Congregado & José María Millán & Concepción Román, 2014. "The emergence of new entrepreneurs in Europe," Economie Internationale, CEPII research center, issue 138, pages 28–48.
  8. repec:ese:iserwp:2011-26 is not listed on IDEAS
  9. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2013. "Business cycle and entrepreneurial behavior using French regional data," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201304, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  10. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant, 2013. "Typology of the French regional development: revealing the refugee/Schumpeter effects in new-firms startups," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201333, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  11. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.

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