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Billionaires

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Listed:
  • Tino Sanandaji
  • Peter T. Leeson

Abstract

Existing studies of entrepreneurship focus on entrepreneurs whose individual contribution to wealth creation is typically trivial: self-employed persons. This article investigates entrepreneurs whose individual contribution to wealth creation is enormous: billionaires. We explore the relationship between economic development, institutions, and these contrasting kinds of entrepreneurs. We find that the institutions consistent with self-employed entrepreneurs differ markedly from the ones consistent with billionaires. Further, only the latter are consistent with the institutions that underlie economic prosperity. Where well-protected private property rights and supporting, market-enhancing institutions flourish, so do billionaires. But self-employed entrepreneurs do not. Where private property rights are weakly protected and interventionist institutions flourish, so do self-employed entrepreneurs. But billionaires do not. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC., Oxford University Press.

Suggested Citation

  • Tino Sanandaji & Peter T. Leeson, 2013. "Billionaires," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 313-337, February.
  • Handle: RePEc:oup:indcch:v:22:y:2013:i:1:p:313-337
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    Cited by:

    1. Thomas Åstebro & Pontus Braunerhjelm & Anders Broström, 2013. "Does academic entrepreneurship pay?," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 281-311, February.
    2. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9868-4 is not listed on IDEAS
    3. Andrea Asoni & Tino Sanandaji, 2014. "Taxation and the quality of entrepreneurship," Journal of Economics, Springer, vol. 113(2), pages 101-123, October.
    4. Zoltán J. Ács & Mark W. J. L. Sanders, 2015. "Knowledge spillover entrepreneurship in an endogenous growth model," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 10, pages 174-194 Edward Elgar Publishing.
    5. Esteban Lafuente & László Szerb & Zoltan J. Acs, 2016. "Country level efficiency and national systems of entrepreneurship: a data envelopment analysis approach," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1260-1283, December.
    6. Aloys Prinz, 2016. "Do capitalistic institutions breed billionaires?," Empirical Economics, Springer, vol. 51(4), pages 1319-1332, December.
    7. Rider, Christopher I. & Thompson, Peter & Kacperczyk, Aleksandra & Tåg, Joacim, 2013. "Experience and Entrepreneurship," Working Paper Series 970, Research Institute of Industrial Economics.

    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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