Entrepreneurship Vulnerability to Business Cycle. A New Methodology for Identification Pro-cyclical and Counter-cyclical Patterns of Entrepreneurial Activity - Publication - Bridge of Knowledge

Your account

login

Search

Entrepreneurship Vulnerability to Business Cycle. A New Methodology for Identification Pro-cyclical and Counter-cyclical Patterns of Entrepreneurial Activity

Abstract

In literature, there is ongoing discussion whether entrepreneurial activity, approximated by, for instance, changes in self-employment, tends to behave pro-cyclically, counter-cyclically or rather is a-cyclical. Thus far, both theoretical and empirical evidence, where various multiple methodological approaches are used, does not provide clear answer to the latter; while widely offered explanations are scattered and lack robustness. This paper is designed to contribute to the present state of the art, by presenting a novel methodological approach to identification of the relationship between the intensity of entrepreneurial activity and business cycle. Put differently, we aim unveil if entrepreneurship (approximated by changes in self-employment) behaves pro-cyclically, counter-cyclically or a-cyclically. To exemplify our new conceptual approach, we use quarterly data on deflated gross domestic product and selfemployment. The empirical evidence presents the case of Italy. The period of analysis is restricted to the years 1995-2014. All statistics are extracted from OECD datasets on Annual Labor Force and Gross Domestic Product.

Authors (2)

Cite as

Full text

download paper
downloaded 118 times
Publication version
Accepted or Published Version
License
Creative Commons: CC-BY-ND open in new tab

Keywords

Details

Category:
Conference activity
Type:
materiały konferencyjne indeksowane w Web of Science
Title of issue:
Advancing Research in Entrepreneurship in the Global Context strony 601 - 637
Language:
English
Publication year:
2016
Bibliographic description:
Lechman E., Dominiak P..: Entrepreneurship Vulnerability to Business Cycle. A New Methodology for Identification Pro-cyclical and Counter-cyclical Patterns of Entrepreneurial Activity, W: Advancing Research in Entrepreneurship in the Global Context, 2016, Cracow University of Economics ,.
Bibliography: test
  1. Añón-Higón, D., Manjón-Antolin, M., Mañez, J. A., & Sanchis-Llopis, J. A. (2014). Does R&D protect SMEs from the hardness of the cycle? Evidence from Spanish SMEs (1990-2009). International Entrepreneurship and Management Journal, 11(2), 361-376. open in new tab
  2. Arum, R., & Müller, W. (Eds.). (2009). The reemergence of self-employment: a comparative study of self-employment dynamics and social inequality. Princeton University Press. open in new tab
  3. Audretsch, D. B., & Acs, Z. J. (1994). New-firm startups, technology, and macroeconomic fluctua- tions. Small Business Economics, 6(6), 439-449. open in new tab
  4. Audretsch, D. B., & Fritsch, M. (2002). Growth regimes over time and space.Regional Studies, 36(2), 113-124. Baptista, R., & Preto, M. T. (2011). New firm formation and employment growth: re- gional and business dynamics. Small Business Economics, 36(4), 419-442.
  5. Baumol, W. J., Schilling, M. A., & Wolff, E. N. (2009). The superstar inventors and entrepreneurs: How were they educated?. Journal of Economics & Management Strategy, 18(3), 711-728. open in new tab
  6. Beneito, P., Rochina-Barrachina, M. E., & Sanchis-Llopis, A. (2014). Ownership and the cyclicality of firms' R&D investment. International Entrepreneurship and Management Journal, 11(2), 343-359. open in new tab
  7. Blanchflower, D. G. (2000). Self-employment in OECD countries. Labour economics, 7(5), 471-505. open in new tab
  8. Burke, A., & Shaukat, A. (2015). Establishment creation and destruction across business density cycles: US evidence. International Entrepreneurship and Management Journal, 11(2), 377-392. open in new tab
  9. Burns, A. F., & Mitchell, W. C. (1946). Measuring business cycles. NBER Books.
  10. Butterworth, S. (1930). On the theory of filter amplifiers. Wireless Engineer,7(6), 536-541.
  11. Bruce, D., & Mohsin, M. (2006). Tax policy and entrepreneurship: New time series evidence. Small Business Economics, 26(5), 409-425. open in new tab
  12. Caballero, R. J., & Hammour, M. L. (1991). The cleansing effect of recessions(No. w3922). National Bureau of Economic Research. open in new tab
  13. Carrasco, R. (1999). Transitions to and from self-employment in Spain: an empirical analysis. open in new tab
  14. Carlstrom, C. T., & Fuerst, T. S. (1997). Agency costs, net worth, and business fluctuations: A com- putable general equilibrium analysis. The American Economic Review, 893-910. open in new tab
  15. Carmona, M., Golpe, A., & Congregado, E. (2010). Self-Employment and Business Cycles. Available at SSRN 1557304. open in new tab
  16. Carmona, M., Congregado, E., & Golpe, A. A. (2012). Comovement between self-employment and macroeconomic variables. SAGE Open, 2158244012448665. open in new tab
  17. Christiano, L. J., & Fitzgerald, T. J. (2003). The band pass filter*. international economic re- view, 44(2), 435-465. open in new tab
  18. Congregado, E., Golpe, A. A., & Parker, S. C. (2012). The dynamics of entrepreneurship: hysteresis, business cycles and government policy. Empirical Economics, 43(3), 1239-1261. open in new tab
  19. Cowling, M., & Mitchell, P. (1997). The evolution of UK self-employment: a study of government policy and the role of the macroeconomy. The Manchester School, 65(4), 427-442. open in new tab
  20. Davis, S. J., Haltiwanger, J. C., & Schuh, S. (1998). Job creation and destruction. MIT Press Books, 1. open in new tab
  21. Dixit, A., & Rob, R. (1994). Switching costs and sectoral adjustments in general equilibrium with uninsured risk. Journal of Economic Theory, 62(1), 48-69. open in new tab
  22. Faria, J. R. (2014). Entrepreneurship and business cycles: technological innovations and unem- ployment. International Entrepreneurship and Management Journal, 11(2), 253-265. open in new tab
  23. Francois, P., & Lloyd-Ellis, H. (2003). Animal spirits through creative destruction. American Econom- ic Review, 530-550. open in new tab
  24. Fritsch, M., & Mueller, P. (2007). The persistence of regional new business formation-activity over time-assessing the potential of policy promotion programs. Journal of Evolutionary Economics, 17(3), 299-315. open in new tab
  25. Fritsch, M., Kritikos, A., & Pijnenburg, K. (2013). Business cycles, unemployment and entre- preneurial entry-evidence from Germany. International Entrepreneurship and Manage- ment Journal, 11(2), 267-286. open in new tab
  26. Gick, W. (2002). Schumpeter's and Kirzner's entrepreneur reconsidered: corporate entrepreneur- ship, subjectivism and the need for a theory of the firm.Entrepreneurship and the firm: Austri- an perspectives on economic organization, 87-101. open in new tab
  27. Gomez, V. (2001). The use of Butterworth filters for trend and cycle estimation in economic time series. Journal of Business & Economic Statistics, 19(3), 365-373. open in new tab
  28. Grant, D. S. (1996). The political economy of new business formation across the American states, 1970-1985. Social Science Quarterly, 28-42. open in new tab
  29. Harvey, A. C., & Jaeger, A. (1993). Detrending, stylized facts and the business cycle. Journal of applied econometrics, 8, 231-231. open in new tab
  30. Harvey, A. C., & Trimbur, T. M. (2003). General model-based filters for extracting cycles and trends in economic time series. Review of Economics and Statistics, 85(2), 244-255. open in new tab
  31. Hodrick, R. J., & Prescott, E. C. (1997). Postwar US business cycles: an empirical investiga- tion. Journal of Money, credit, and Banking, 1-16. open in new tab
  32. Iversen, J., & Jorgensen, R. N. Malchow-Moller (2008), Defining and Measuring Entrepreneur- ship. Foundations and Trends in Entrepreneurship, 4(1). open in new tab
  33. King, R. G., & Rebelo, S. T. (1993). Low frequency filtering and real business cycles. Journal of Eco- nomic dynamics and Control, 17(1), 207-231. open in new tab
  34. Klapper, L., Love, I., & Randall, D. (2014). New firm registration and the business cy- cle. International Entrepreneurship and Management Journal, 11(2), 287-306. open in new tab
  35. Kaiser, R., & Maravall, A. (1999). Estimation of the business cycle: A modified Hodrick-Prescott filter. Spanish Economic Review, 1(2), 175-206. open in new tab
  36. Kaiser, R., & Maravall, A. (2012). Measuring business cycles in economic time series (Vol. 154). Springer Science & Business Media. open in new tab
  37. King, R. G., Stock, J. H., & Watson, M. W. (1995). Temporal instability of the unemployment- inflation relationship. Economic Perspectives, 19(3), 2.
  38. Kirzner, I. M. (1999). Creativity and/or alertness: A reconsideration of the Schumpeterian entre- preneur. The Review of Austrian Economics, 11(1), 5-17. open in new tab
  39. Klapper, L., Love, I., & Randall, D. (2014). New firm registration and the business cy- cle. International Entrepreneurship and Management Journal, 11(2), 287-306. open in new tab
  40. Koellinger, P. D., & Roy Thurik, A. (2012). Entrepreneurship and the business cycle. Review of Eco- nomics and Statistics, 94(4), 1143-1156. open in new tab
  41. Kydland, F. E., & Prescott, E. C. (1990). Business cycles: Real facts and a monetary myth. Real busi- ness cycles: a reader. open in new tab
  42. Llopis, J. A. S., Millán, J. M., Baptista, R., Burke, A., Parker, S. C., & Thurik, R. (2015). Good times, bad times: entrepreneurship and the business cycle.International Entrepreneurship and Man- agement Journal, 11(2), 243-251.
  43. Millán, J. M., Congregado, E., & Román, C. (2012). Determinants of self-employment survival in Europe. Small Business Economics, 38(2), 231-258. open in new tab
  44. Millán, A., Millán, J. M., Román, C., & van Stel, A. (2015). Unraveling the relationship between the business cycle and the own-account worker's decision to hire employees. International Entre- preneurship and Management Journal,11(2), 321-342. open in new tab
  45. Murray, C. J. (2003). Cyclical properties of Baxter-King filtered time series. Review of Economics and Statistics, 85(2), 472-476. open in new tab
  46. Parker, S. C. (1996). A time series model of self-employment under uncertainty. Economica, 459-475. open in new tab
  47. Parker, S. C. (2005). Explaining regional variations in entrepreneurship as multiple occupational equilibria*. Journal of Regional Science, 45(4), 829-850. open in new tab
  48. Parker, S. C. (2009). The economics of entrepreneurship. Cambridge University Press. open in new tab
  49. Parker, S. C. (2012). Entrepreneurship and the Business Cycle: Evidence and Implications for Policy- Makers. In Entrepreneurship, Norms and the Business Cycle, Swedish Entrepreneurship Forum Report (pp. 35-51). open in new tab
  50. Parker, S. C., Congregado, E., & Golpe, A. A. (2012a). Is entrepreneurship a leading or lagging indi- cator of the business cycle? Evidence from UK self-employment data. International Small Business Journal, 30(7), 736-753. open in new tab
  51. Parker, S. C., Congregado, E., & Golpe, A. A. (2012b). Testing for hysteresis in entrepreneurship in 23 OECD countries. Applied Economics Letters, 19(1), 61-66. open in new tab
  52. Parker, S. C., & Robson, M. T. (2004). Explaining international variations in self-employment: evi- dence from a panel of OECD countries. Southern Economic Journal, 287-301. open in new tab
  53. Pérotin, V. (2006). Entry, exit, and the business cycle: Are cooperatives different?. Journal of Com- parative Economics, 34(2), 295-316. open in new tab
  54. Prescott, E. C. (1986, November). Theory ahead of business-cycle measurement. In Carnegie- Rochester Conference Series on Public Policy (Vol. 25, pp. 11-44). North-Holland. open in new tab
  55. Pollock, D. S. G., Green, R. C., & Nguyen, T. (Eds.). (1999). Handbook of time series analysis, signal processing, and dynamics. Academic Press. open in new tab
  56. Pollock, D. S. G. (2000). Trend estimation and de-trending via rational square-wave filters. Journal of Econometrics, 99(2), 317-334. open in new tab
  57. Rampini, A. A. (2004). Entrepreneurial activity, risk, and the business cycle.Journal of Monetary Economics, 51(3), 555-573. open in new tab
  58. Selesnick, I.W., & Burrus, C.S. (1998). Generalized digital Butterworth filter design.Signal Pro- cessing, IEEE Transactions on, 46(6), 1688-1694.Stove DC (1986) The rationality of induction. Oxford: Clarendon Press. open in new tab
  59. Shleifer, A. (1986). Implementation cycles. The Journal of Political Economy, 1163-1190. open in new tab
  60. Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (Vol. 55). Transaction publishers. open in new tab
  61. Wennekers, S., & Thurik, R. (1999). Linking entrepreneurship and economic growth. Small business economics, 13(1), 27-56. open in new tab
Verified by:
Gdańsk University of Technology

seen 106 times

Recommended for you

Personal Entrepreneurial Potential in the Opinion of Young Women Entering the Labor Market

2014

Research on entrepreneurship – the forms of entrepreneurship

2017

SOCIAL ENTREPRENEURS – WHAT MAKES THEM DIFFERENT FROM BUSINESS UNDERTAKERS

2014

Youth attitude to entrepreneurship in Eastern and Central European countries: Gender aspect

2022
Meta Tags