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Entrepreneurship and the Business Cycle

Author

Listed:
  • Philipp D. Koellinger

    (Erasmus School of Economics, Tinbergen Institute, Erasmus Research Institute in Management, German Institute for Economic Research)

  • A. Roy Thurik

    (Erasmus School of Economics, Tinbergen Institute, Erasmus Research Institute in Management, German Institute for Economic Research)

Abstract

We find new empirical regularities in the business cycle in a cross-country panel of 22 OECD countries for the period 1972 to 2007; entrepreneurship Granger-causes the cycles of the world economy. Furthermore, the entrepreneurial cycle is positively affected by the national unemployment cycle. We discuss possible causes and implications of these findings. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Philipp D. Koellinger & A. Roy Thurik, 2012. "Entrepreneurship and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1143-1156, November.
    • Handle: RePEc:tpr:restat:v:94:y:2012:i:4:p:1143-1156
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    Keywords

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    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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