Volume 6(1) • 2013
Economic Freedom, Entrepreneurship, & Income Levels: Some US State-Level Empirics
ABSTRACT. Recent literatures on entrepreneurship and economic growth estimate the empirical relationships between the following pairs of variables: (1) institutions and entrepreneurial activity; (2) institutions and economic growth; and (3) entrepreneurship and economic growth. This paper revisits e..
The Effect of Personal and Economic Freedom on Entrepreneurial Activity: Evidence from a New State Level Freedom Index
ABSTRACT. We use a newly developed freedom index by Ruger and Sorens (2009, 2011) to examine the effect of freedom on entrepreneurship. One advantage of using this new index is that it is the first of its kind to include measures of both personal and economic freedom. This allows testing which speci..
Economic Freedom and Entrepreneurship: A Panel Study of the United States
ABSTRACT. We run panel regressions to test the impact of economic freedom in the 50 states on five different measures of Entrepreneurship. We find that higher average levels of economic freedom lead to higher average business birth rates and, in some cases, more patents per capita in a state. When w..
Disentangling Institutional Determinants of Entrepreneurship
ABSTRACT. This paper attempts to empirically disentangle the institutional determinants of several aspects of entrepreneurship. Recent literature independently links both formal and informal institutions to entrepreneurship but both types should be incorporated in the analysis. Economic freedom prox..
Legal Entrepreneurship within a System of Entangled Political Economy
ABSTRACT. Entrepreneurship is the economic source of change in society. While it is ubiquitous, its particular qualities depend on the system of political economy in which it operates. We distinguish between two systems of democratic political economy. One system is the classically liberal system wh..
Profits and Prosperity
ABSTRACT. Neoclassical microeconomics characterizes profit as a sign of inefficiency, because in that framework profit is either a sign of monopoly power or market disequilibrium. In contrast, Schumpeter characterized profit as necessary for economic development and an indicator of economic progress..
Entrepreneurship and the Link between Economic Freedom and Growth
ABSTRACT. Economists have rediscovered institutions as the key to prosperity and growth over the past two decades, aided by the development of new measures of the scope of government. Research has also established the role of entrepreneurship in explaining differences in growth across nations. This ..