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Is Neoclassical Economics still Entrepreneurless?

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Author Info
Bianchi, Milo () (Dept. of Economics, Stockholm School of Economics)
Henrekson, Magnus () (Dept. of Economics, Stockholm School of Economics)

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Abstract

We review and evaluate some recent contributions on the modeling of entrepreneurship within a neoclassical framework, analyzing how and to what extent the fundamental ingredients suggested in the social science literature were captured. We show how these approaches are important in stressing the main elements of a complex picture without being able to completely describe it. However, each modeling attempt focuses only on one specific feature of entrepreneurship. The entrepreneurial function broadly perceived eludes analytical tractability. As a consequence, the models can be useful in analyzing the effect of entrepreneurial behavior at an aggregate level, but not at explaining individual choices. From these observations we highlight how a simplistic interpretation of the existing mainstream approaches incorporating entrepreneurship runs the risk of leading to distortionary policy interventions.

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Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 584.

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Length: 24 pages
Date of creation: 31 Jan 2005
Date of revision: 02 Feb 2005
Publication status: Published in Kyklos, 2005, pages 353-377.
Handle: RePEc:hhs:hastef:0584

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Related research
Keywords: Entrepreneurial Choice; Entrepreneurship; Innovation; Neoclassical Modeling; Uncertainty;

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Find related papers by JEL classification:
B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Magnus Henrekson & Anders Lundström, 2009. "The Global Award for Entrepreneurship Research," Small Business Economics, Springer, vol. 32(1), pages 1-14, January. [Downloadable!] (restricted)
    Other versions:
  2. Douhan, Robin & Henrekson, Magnus & Eliasson, Gunnar, 2006. "Israel M. Kirzner: An Outstanding Austrian Contributor to the Economics of Entrepreneurship," Working Paper Series 678, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  3. Norbäck, Pehr-Johan & Persson, Lars & Vlachos, Jonas, 2006. "Entrepreneurial Innovations, Competition and Competition Policy," Working Paper Series 670, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  4. Henrekson, Magnus, 2002. "Entrepreneurship: A Weak Link in the Welfare State," Working Paper Series in Economics and Finance 518, Stockholm School of Economics, revised 04 Mar 2005. [Downloadable!]
    Other versions:
  5. Milo Bianchi, 2008. "Financial development, entrepreneurship and job satisfaction," PSE Working Papers 2008-59, PSE (Ecole normale supérieure), revised Feb 2009. [Downloadable!]
  6. Philipp Weinschenk, 2009. "Persistence of Monopoly and Research Specialization," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_11, Max Planck Institute for Research on Collective Goods. [Downloadable!]
  7. Yong Yik Wei & Aekapol Chongvilaivan & Chew Jing Yang, 2008. "Alternative Approaches to the Development of Early Childhood Education in Singapore," SCAPE Policy Research Working Paper Series 0808, National University of Singapore, Department of Economics, SCAPE. [Downloadable!]
  8. Marco Caliendo & Alexander S. Kritikos, 2006. "Is Entrepreneurial Success Predictable? An Ex-Ante Analysis of the Character-Based Approach," Working Papers 0001, Gesellschaft für Arbeitsmarktaktivierung (GfA). [Downloadable!]
    Other versions:
  9. Bianchi, Milo, 2009. "Credit Constraints, Entrepreneurial Talent, and Economic Development," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Fabrizi, Simona & Lippert, Steffen & Norback, Pehr-Johan & Persson, Lars, 2007. "Venture Capitalists, Asymmetric Information and Ownership in the Innovation Process," MPRA Paper 6265, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  11. Christian Bjørnskov & Nicolai Foss, 2008. "Economic freedom and entrepreneurial activity: Some cross-country evidence," Public Choice, Springer, vol. 134(3), pages 307-328, March. [Downloadable!] (restricted)
    Other versions:
  12. Norbäck, Pehr-Johan & Persson, Lars, 2004. "The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists, and Oligopolists," Working Paper Series 626, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
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