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The perverse effect of fatalism on entrepreneurial selection

  • Gabriele Ruiu

    ()

    (Università degli studi di Sassari, Dipartimento di Scienze Economiche e Aziendali)

This paper presents a theoretical model explaining how fatalistic beliefs may influence a person's choice as to whether to become an entrepreneur. The key assumption of the model is that fatalism affects the expected effectiveness of the efforts that will be exerted in running an entrepreneurial project. The main prediction is that fatalism will be a serious obstacle to high ability entrepreneurs but not necessarily to low ability ones. Using GEM and WVS data, we confirm that the effect of fatalism is much stronger for opportunity driven entrepreneurs than for necessity driven entrepreneurs.

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File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I2-P85.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 34 (2014)
Issue (Month): 2 ()
Pages: 901-922

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Handle: RePEc:ebl:ecbull:eb-13-00841
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  1. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2009. "Regulation and Distrust," Working Papers hal-00396268, HAL.
  2. Guido Tabellini, 2005. "Culture and Institutions: Economic Development in the Regions of Europe," CESifo Working Paper Series 1492, CESifo Group Munich.
  3. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
  4. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
  5. Stuetzer, Michael & Obschonka, Martin & Brixy, Udo & Sternberg, Rolf & Cantner, Uwe, 2013. "Regional characteristics, opportunity perception and entrepreneurial activities," MPRA Paper 48277, University Library of Munich, Germany.
  6. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/GMM estimation and testing," Boston College Working Papers in Economics 667, Boston College Department of Economics, revised 05 Sep 2007.
  7. Ghatak, Maitreesh & Morelli, Massimo & Sjostrom, Tomas, 2007. "Entrepreneurial talent, occupational choice, and trickle up policies," Journal of Economic Theory, Elsevier, vol. 137(1), pages 27-48, November.
  8. Michael Fritsch & Alina Rusakova, 2010. "Personality Traits, Self-Employment, and Professions," Jena Economic Research Papers 2010-075, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  9. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
  10. repec:spo:wpecon:info:hdl:2441/8883 is not listed on IDEAS
  11. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950-2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
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