Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 0000-00-00 Revision-Date: 2009-09-30 Number: 09-032/3 Author-Name: P.D. Koellinger Author-Workplace-Name: Erasmus School of Economics, Erasmus University Rotterdam Author-Name: A.R. Thurik Author-Workplace-Name: Erasmus School of Economics, Erasmus Universiteit Rotterdam Title: Entrepreneurship and the Business Cycle Abstract: This discussion paper resulted in a publication in 'The Review of Economics and Statistics' (2012). Volume 94, issue 4, pages 1143-1156.
We study the cyclical pattern of entrepreneurial activity. Results across 22 OECD countries for the period 1972-2007 show that entrepreneurial activity is a leading indicator of the business cycle in a Granger-causality sense. This contradicts existing theoretical hypotheses which predict that entrepreneurship is pro-cyclical or not cyclical. We discuss possible causes and implications of this finding. Classification-JEL: L26, E32 Keywords: Entrepreneurship, business cycle File-Url: http://papers.tinbergen.nl/09032.pdf File-Format: application/pdf File-Size: 602576 bytes Handle: RePEc:tin:wpaper:20090032