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Entrepreneurship and the Business Cycle

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Author Info
P.D. Koellinger () (Erasmus School of Economics, Erasmus University Rotterdam)
A.R. Thurik () (Erasmus School of Economics, Erasmus Universiteit Rotterdam)

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Abstract

We study the cyclical pattern of entrepreneurial activity. Results across 22 OECD countries for the period 1972-2007 show that entrepreneurial activity is a leading indicator of the business cycle in a Granger-causality sense. This contradicts existing theoretical hypotheses which predict that entrepreneurship is pro-cyclical or not cyclical. We discuss possible causes and implications of this finding.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-032/3.

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Date of revision: 30 Sep 2009
Handle: RePEc:dgr:uvatin:20090032

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Related research
Keywords: Entrepreneurship; business cycle;

Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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This page was last updated on 2009-11-5.

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