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The Entrepreneurship Beveridge Curve

Listed author(s):
  • Gries, Thomas

    ()

    (University of Paderborn)

  • Jungblut, Stefan

    ()

    (University of Paderborn)

  • Naudé, Wim

    ()

    (Maastricht University)

We propose that the rate of creation and failure of start-up firms can be modelled as a search and matching process, following labor market matching models. Setting out an endogenous growth model with entrepreneurship we derive a Entrepreneurship Beveridge Curve, through which we illustrate that entrepreneurial start-ups are the outcome of the efficiency with which entrepreneurial abilities are matched with business opportunities. The Entrepreneurship Beveridge Curve is a potentially useful analytical tool to add to the formalization of the economics of entrepreneurship, and we mention a number of extentions and applications.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9744.

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Length: 20 pages
Date of creation: Feb 2016
Handle: RePEc:iza:izadps:dp9744
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  1. Gries, Thomas & Naudé, Wim, 2011. "Entrepreneurship and human development: A capability approach," Journal of Public Economics, Elsevier, vol. 95(3), pages 216-224.
  2. Mark Casson & Nigel Wadeson, 2007. "The Discovery of Opportunities: Extending the Economic Theory of the Entrepreneur," Small Business Economics, Springer, vol. 28(4), pages 285-300, April.
  3. Guido Buenstorf, 2007. "Creation and Pursuit of Entrepreneurial Opportunities: An Evolutionary Economics Perspective," Small Business Economics, Springer, vol. 28(4), pages 323-337, April.
  4. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, January.
  5. James Fiet & Pankaj Patel, 2008. "Entrepreneurial Discovery as Constrained, Sytematic Search," Small Business Economics, Springer, vol. 30(3), pages 215-229, March.
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