Wealth inequality is back in the spotlight, but its determinants and the saving behaviour generating it are less clear. This column discusses the mechanisms in dynamic quantitative macro models that give rise to wealth inequality. Different mechanisms give rise to similar observed wealth concentrations, but have very different policy implications. A combination of better empirical analysis and richer models is needed to guide policy.
Mariacristina De Nardi, Saturday, July 11, 2015
Kirill Shakhnov, Saturday, January 17, 2015
The rapid growth of the US financial sector has driven policy debate on whether it is socially desirable. This column examines the trade-off between finance and entrepreneurship, and links the growth of finance to rising wealth inequality. Although financial intermediation helps allocate capital efficiently, people choosing a career in finance do not internalise the negative effect on the pool of talented entrepreneurs. This mechanism can explain the simultaneous growth of wealth inequality and finance in the US, and why more unequal countries have larger financial sectors.
The Workshop will bring together researchers interested in studying entrepreneurship. We welcome submissions related to (occupational) choice, entrepreneurial behaviour, incentives to promote entrepreneurship, relevant program evaluations, entrepreneurship & institutions, the management of entrepreneurship and innovation, entrepreneurship & (venture) capital, financing entrepreneurship, entrepreneurship & regions, theory of the firm, etc. We welcome both theoretical and empirical contributions (empirical work based on data of developing and developed countries).
The (draft) papers should be submitted by Saturday 31 January 2015.
Ejaz Ghani, William Kerr, Stephen D O'Connell, Thursday, October 2, 2014
Numerous countries have implemented seat reservations for women in politics over the past decades. Starting in the early 1990s, India’s flagship decentralisation reform instituted one-third seat reservations for women in local governance bodies. This column suggests that this political empowerment increased women’s economic empowerment through at least one channel, i.e. small-scale entrepreneurship. These findings suggest that political empowerment policies for women may additionally have beneficial economic effects in the longer run.
Manuel Adelino, Song Ma, David Robinson, Wednesday, February 12, 2014
There is a strong link between entrepreneurship and growth – young firms were responsible for almost all net job creation in the US economy over the last 30 years. This column presents new research into the responsiveness of firms of different ages to investment opportunities. Firms aged 0–23 months create about twice the total number of new jobs in response to local income shocks than firms that are more than six years old.
Simone Bertoli, Francesca Marchetta, Friday, October 4, 2013
Return migrants have major social and economic consequences for their countries of origin. This column uses Egyptian household-level data to analyse the effects of migrants returning from neighbouring Arab countries. Start-up firms by returnees are more likely to survive, and returnee families tend to have more children. These results imply that return migration may not be an unmitigated blessing for Egypt.
Meghana Ayyagari, Thorsten Beck, Mohammad Hoseini, Sunday, June 2, 2013
Using state-level data from India over the period 1983 to 2005, this paper gauges the effect of financial deepening and outreach on rural poverty. Its findings suggest that financial deepening contributed to poverty alleviation in rural areas by fostering entrepreneurship and inducing geographic-sectoral migration.
Aaron Chatterji, Edward Glaeser, William Kerr, Tuesday, June 4, 2013
Contrary to received wisdom, entrepreneurial clusters in the US – like Silicon Valley – are seen as success stories. But what is the rationale behind these clusters? Do they actually work? This column reviews the evidence and discusses localised policies currently being pursued in the US. In general, our understanding of what works remains limited and economists should more thoroughly pursue researching the effects of entrepreneurial clusters.
Ejaz Ghani, William Kerr, Stephen D O'Connell, Friday, February 22, 2013
Although its economic development has been impressive, recent events have sparked debate about India’s gender inequality. This column argues that Indian women’s levels of entrepreneurship and participation in the labour force are some of the lowest in the world. India’s economic growth and shared prosperity depends upon successfully utilising both its male and female workforce, and improving this balance is an important step towards sharing the benefits of India’s growth. Economically and socially, gender equality should be a no-brainer for policymakers.
Yves Zenou, Jackline Wahba, Sunday, August 19, 2012
Are return migrants more likely to become entrepreneurs than non-migrants? This column, using data from Egypt, argues that although migrants lose their social networks whilst overseas, savings and human capital accumulation acquired abroad overcompensate for this loss. This makes return migrants more likely to start businesses.
Ejaz Ghani, William Kerr, Stephen D O'Connell, Sunday, February 26, 2012
Entrepreneurship is often held aloft as the missing ingredient for growth in many economies, particularly developing countries. But for many policymakers, entrepreneurs are a mystery. This column looks at India and asks why entrepreneurs locate where they do.
Luigi Guiso, Aldo Rustichini, Monday, January 17, 2011
Why are women so under-represented among entrepreneurs? Are women intrinsically ill-suited to the risk-taking and competition of entrepreneurship? Or is it social norms that impede them? The authors of CEPR DP8204 test these theories and argue that sexist culture keeps even high-ability women from becoming entrepreneurs.
William Kerr, Ramana Nanda, Tuesday, April 27, 2010
How should a government promote entrepreneurship? This column argues that providing support programmes for targeted sectors or companies is akin to “picking winners ex ante”. A far better approach is to encourage competition in the financial sector that facilitates experimentation in the real economy. Governments should forget about picking winners and focus on picking the right system.
Josh Lerner, Friday, March 12, 2010
Josh Lerner of Harvard Business School talks to Vox about the policies that governments employ to encourage venture capital and entrepreneurial activity, drawing on the findings in his book, Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed – and What to Do About It. The interview was recorded in London in January 2010.
Josh Lerner, Friday, February 12, 2010
Josh Lerner of Harvard Business School talks to Vox about sovereign wealth funds, which are the focus of a chapter in his new book, Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed – and What to Do About It. The interview was recorded in London in January 2010.
Edward Glaeser, William Kerr, Wednesday, November 26, 2008
Many academics, policy makers, and business leaders stress the importance of local conditions for explaining spatial differences in entrepreneurship and economic development. This column assesses the importance of various forces for agglomeration. The empirical evidence suggests that market effects, such as proximity to input suppliers and labour market pooling, play a big role, while there is less support for factors like entrepreneurial culture and industrial diversity.
Josh Lerner, Friday, August 22, 2008
Where do clusters of entrepreneurs come from? Josh Lerner of Harvard Business School talks to Romesh Vaitilingam about his research on peer effects and early-career entrepreneurship, which analyses data on HBS alumni. The interview was recorded at the American Economic Association meetings in New Orleans in January 2008.
David B Audretsch, Friday, August 22, 2008
David Audretsch of the Max Planck Institute of Economics and Indiana University talks to Romesh Vaitilingam about his research programme on entrepreneurship – the key institutional drivers and constraints; the impact of globalisation and new technology; the links to growth and competitiveness; and the public policy issues. The interview was recorded at the American Economic Association meetings in New Orleans in January 2008.
Hans K. Hvide, Friday, September 28, 2007
More liquidity is good for entrepreneurs, but not always. New empirical analysis gives evidence on a hypothesis formulated by Adam Smith and suggests directions for policy discussions.
David B Audretsch, Werner Bönte, Jagannadha Pawan Tamvada , Monday, July 9, 2007
By examining whether religion has any impact on decision-making that promotes economic growth, i.e. the decision to become an entrepreneur, the authors of DP6378 aim to shed light on two questions: (1) What are the channels by which religion influences economics and (2) Are the impacts on economic activity the same across all religions?