IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v27y2011is1ps78-s88.html
   My bibliography  Save this article

Entrepreneurship: The role of extreme events

Author

Listed:
  • Brück, Tilman
  • Llussá, Fernanda
  • Tavares, José A.

Abstract

We use aggregate country data as well as individual level survey to uncover, for the first time, the effect of extreme events such as natural disasters and terrorist attacks on entrepreneurial activity. We find that natural disasters and terrorist attacks influence individual perceptions of the rewards to entrepreneurship and, more surprisingly, extreme events affect entrepreneurship rates positively in a robust and significant way.

Suggested Citation

  • Brück, Tilman & Llussá, Fernanda & Tavares, José A., 2011. "Entrepreneurship: The role of extreme events," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 78-88.
  • Handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s78-s88
    DOI: 10.1016/j.ejpoleco.2011.08.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268011000796
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeff Dominitz, 1998. "Earnings Expectations, Revisions, And Realizations," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 374-388, August.
    2. repec:taf:oxdevs:v:45:y:2017:i:2:p:125-144 is not listed on IDEAS
    3. John Bellows & Edward Miguel, 2006. "War and Institutions: New Evidence from Sierra Leone," American Economic Review, American Economic Association, vol. 96(2), pages 394-399, May.
    4. Nicole Crain & W. Crain, 2006. "Terrorized economies," Public Choice, Springer, vol. 128(1), pages 317-349, July.
    5. Rachida Justo & CRISTINA CRUZ & Julio De Castro, 2006. "Entrepreneurs´ perceptions of success: examining differences across gender and family status," Working Papers Economia wp06-07, Instituto de Empresa, Area of Economic Environment.
    6. Bozzoli, Carlos & Brück, Tilman & Muhumuza, Tony, 2011. "Does war influence individual expectations?," Economics Letters, Elsevier, vol. 113(3), pages 288-291.
    7. Todd Sandler, 2009. "The past and future of terrorism research," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(2), pages 5-25, Autumn.
    8. Çağatay Bircan & Tilman Brück & Marc Vothknecht, 2017. "Violent conflict and inequality," Oxford Development Studies, Taylor & Francis Journals, vol. 45(2), pages 125-144, April.
    9. Christopher Blattman & Edward Miguel, 2010. "Civil War," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 3-57, March.
    10. Marshall Burke & John Dykema & David Lobell & Edward Miguel & Shanker Satyanath, 2010. "Climate and Civil War: Is the Relationship Robust?," NBER Working Papers 16440, National Bureau of Economic Research, Inc.
    11. Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, September.
    12. Carlos Bozzoli & Tilman Brück & Nina Wald, 2013. "Self-employment and Conflict in Colombia," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 117-142, February.
    13. repec:cup:apsrev:v:103:y:2009:i:02:p:231-247_09 is not listed on IDEAS
    14. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part I)," Discussion Papers of DIW Berlin 1049, DIW Berlin, German Institute for Economic Research.
    15. Frey, Bruno S., 2009. "How can business cope with terrorism?," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 779-787, September.
    16. Tavares, Jose, 2004. "The open society assesses its enemies: shocks, disasters and terrorist attacks," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1039-1070, July.
    17. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    18. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, February.
    19. Bozzoli, Carlos & Müller, Cathérine, 2011. "Perceptions and attitudes following a terrorist shock: Evidence from the UK," European Journal of Political Economy, Elsevier, vol. 27(S1), pages 89-106.
    20. Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1988. "Entrepreneurs' perceived chances for success," Journal of Business Venturing, Elsevier, vol. 3(2), pages 97-108.
    21. Maria Minniti & Carlo Nardone, 2007. "Being in Someone Else’s Shoes: the Role of Gender in Nascent Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 223-238, March.
    22. Khusrav Gaibulloev & Todd Sandler, 2008. "The Impact of Terrorism and Conflicts on Growth in Asia, 1970–2004," Working Papers id:1789, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Singhal, Saurabh & Nilakantan, Rahul, 2016. "The economic effects of a counterinsurgency policy in India: A synthetic control analysis," European Journal of Political Economy, Elsevier, vol. 45(C), pages 1-17.
    2. Kenneth R. Ahern, 2018. "The Importance of Psychology in Economic Activity: Evidence from Terrorist Attacks," NBER Working Papers 24331, National Bureau of Economic Research, Inc.
    3. Economou Athina & Kollias Christos, 2015. "Terrorism and Political Self-Placement in European Union Countries," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(2), pages 217-238, April.
    4. Dorsett, Richard, 2013. "The effect of the Troubles on GDP in Northern Ireland," European Journal of Political Economy, Elsevier, vol. 29(C), pages 119-133.
    5. repec:eee:poleco:v:51:y:2018:i:c:p:93-106 is not listed on IDEAS

    More about this item

    Keywords

    Extreme events; Terrorism; Natural disasters; Perceptions; Entrepreneurship;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:27:y:2011:i:s1:p:s78-s88. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.