The dynamics of entrepreneurship: hysteresis, business cycles and government policy

Arbeitspapier

This paper estimates an unobserved components model to explore the macro dynamics of entrepreneurship in Spain and the US. We ask whether entrepreneurship exhibits hysteresis, defined as a macro dynamic structure in which cyclical fluctuations have persistent effects on the natural rate of entrepreneurship. We find evidence of hysteresis in Spain, but not the US, while in both countries business cycle output variations significantly affect future rates of entrepreneurship. The article discusses implications of the findings for the design of entrepreneurship policies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4093

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Business Fluctuations; Cycles ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: Hysteresis ; unobserved components model ; time series models ; business cycles ; self-employment ; entrepreneurship ; Unternehmer ; Selbstständige ; Hysteresis ; Konjunktur ; Vergleich ; Spanien ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Congregado, Emilio ; Golpe, Antonio A. ; Parker, Simon C.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/35576
• URN: urn:nbn:de:101:1-2009040367
• Last update: 10.03.2025, 11:45 AM CET