Legal Encouragement of Entrepreneurial Activity

Entrepreneurial Activity in Equilibrium ∗

This paper compares the financing of new ventures in start-ups (entrepreneurship) and in established firms (intrapreneurship). Intrapreneurship allows established firms to use information on failed intrapreneurs to redeploy them into other jobs. Instead, failed entrepreneurs must seek other jobs in an imperfectly informed external labor market. While this is ex-post inefficient, it provides ent...

Correlation of Income Inequality and Entrepreneurial Activity

The fact of growth of inequality in distribution of income both inside the national economies and between the countries is confirmed by many empirical studies. In particular, these are annual reports of the World Bank, UNIDO and European Commission. The growth of inequality in distribution of income causes social tension inside the countries and promotes conflicts between the countries. Entrepr...

Encouragement of Science.

Religion and Entrepreneurial Activity in the U.S.*

What relationships exist between the institutions of a religion and the entrepreneurial activity of that religion’s adherents? Numerous studies have documented positive links between entrepreneurship and economic growth and development.1 However, other studies that report a positive relationship between religion and growth fail to explicitly consider an entrepreneurship channel.2 In fact, there...

Motivating entrepreneurial activity in a firm ∗

We consider the problem of motivating privately informed managers to engage in entrepreneurial activity to improve the quality of the firm’s investment opportunities. The firm’s investment and compensation policy must balance the manager’s incentives to provide entrepreneurial effort and to report her private information truthfully. The optimal policy is to underinvest (compared to first-best) ...