Modelling Entrepreneurship: Unifying the Equilibrium and Entry/Exit Approach
AbstractThis research report provides a framework for modelling rates of entrepreneurship. The proposed framework may be helpful in separating the effects of a range of different variables, all possibly affecting the rate to which people choose to become or remain self-employed. We unify two approaches with respect to the modelling of the rates of entrepreneurship. The first approach is the 'equilibrium approach', seeking to estimate the long and short-run developments of the number of self-employed. The second approach is the entry/exit approach, seeking to determine the determinants of gross entry and exit rates and their interdependencies. The empirical application to Dutch data indicates how the method works and what sorts of results may be expected.
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Bibliographic InfoPaper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200305.
Length: 20 pages
Date of creation: 11 Sep 2003
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Other versions of this item:
- Niels Bosma & Gerrit Wit & Martin Carree, 2005. "Modelling Entrepreneurship: Unifying The Equilibrium and Entry/Exit Approach," Small Business Economics, Springer, vol. 25(1), pages 35-48, 08.
- Gerrit de Wit & Niels Bosma & Martin Carree, 2002. "Modelling Entrepreneurship: unifying the equilibrium and entry/exit approach," Scales Research Reports N200201, EIM Business and Policy Research.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
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