Is Neoclassical Economics still Entrepreneurless

Published on Jul 1, 2005in Kyklos1.67
· DOI :10.1111/j.0023-5962.2005.00292.x
Milo Bianchi9
Estimated H-index: 9
(University of Toulouse),
Magnus Henrekson32
Estimated H-index: 32
(Research Institute of Industrial Economics)
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.
  • References (91)
  • Citations (94)
Published on Jan 20, 2009in Voprosy Economiki
David Colander34
Estimated H-index: 34
(Middlebury College)
The paper considers the change in theoretical and empirical research in modern economics. This change is driven by the emergence of new theoretical approaches associated with the complexity theory and behavioral economics. The author shows that in future economists will reject some basic assumptions of neoclassical economics and adopt many different interdisciplinary approaches in order to study concrete economic problems. These gradual transformations should considerably change the structure of...
Published on Jul 5, 2007
Magnus Henrekson32
Estimated H-index: 32
(Research Institute of Industrial Economics)
This comment provides a critical evaluation of Blanchflower's (2004) survey of various aspects of self-employment and his overall normative conclusion that "more may not be better". In order to draw normative conclusions regarding the optimal level of self-employment a number of issues ignored by Blanchflower need to be addressed. First, self-employment may or may not be entrepreneurial. Second, it could be a second-best solution to institutional deficiencies at either the firm or the social lev...
Published on Jun 28, 2007in Journal of Technology Transfer4.04
Magnus Henrekson32
Estimated H-index: 32
(HHS: Stockholm School of Economics),
Nathan Rosenberg48
Estimated H-index: 48
(Stanford University)
The recent ‘scientification’ of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the commercialization of research, is widely discussed. The purpose of this paper is to suggest a framework for identifying the strategic individual decisions involved when educational choice is translated into science-based entrepreneurship. Identifying these ...
Published on Jan 1, 2006
Arne Bigsten29
Estimated H-index: 29
Published on Jan 1, 2006in Public Choice0.97
Jesper Roine14
Estimated H-index: 14
(HHS: Stockholm School of Economics)
This paper considers redistributive as well as political consequences of tax avoidance. When tax avoidance is possible, the official tax rate does not necessarily correspond to what individuals actually pay. This affects both redistributive outcomes as well as political attitudes towards taxation. Depending on the avoidance technology different political equilibria emerge. When the avoidance possibilities are limited, the classical conflict between rich and poor is sustained. If the tax avoidanc...
Published on Sep 1, 2005in Daedalus1.52
Robert M. Solow60
Estimated H-index: 60
(MIT: Massachusetts Institute of Technology)
pline began in September 1940 when I enrolled as a freshman in the elementary economics course at Harvard College. I will try in this essay to make sense of the evolution of economics over a span of more than 1⁄2fty years. An analogy that comes to mind is from The Boston Globe. The Sunday edition occasionally publishes pairs of photographs of urban landscapes. They are taken from the same spot, looking in the same direction, but are at least thirty, forty, or 1⁄2fty years apart. One shows a corn...
Published on Jan 1, 2005
Zoltan J. Acs70
Estimated H-index: 70
David B. Audretsch93
Estimated H-index: 93
Published on Jan 1, 2005in National Bureau of Economic Research
Boyan Jovanovic44
Estimated H-index: 44
(NYU: New York University),
Peter L. Rousseau27
Estimated H-index: 27
(Vandy: Vanderbilt University)
Electricity and Information Technology (IT) are perhaps the two most important general purpose technologies (GPTs) to date. We analyze how the U.S. economy reacted to them. The Electricity and IT eras are similar, but also differ in several important ways. Electrification was more broadly adopted, whereas IT seems to be technologically more "revolutionary." The productivity slowdown is stronger in the IT era but the ongoing spread of IT and its continuing precipitous price decline are reasons fo...
Olmo Silva17
Estimated H-index: 17
Entrepreneurs are believed to be the ultimate engine of modern economic systems. Yet, the study of entrepreneurship suffers from the lack of consensus on the most crucial question: what makes an entrepreneur? A recent theory developed by Edward Lazear suggests that individuals mastering a balanced set of talents across different fields, i.e. the Jacks-of-All-Trades (JATs), have a high probability of becoming entrepreneurs. In this paper, I investigate whether the JAT Attitude is just an innate a...
Cited By94
Published on Jan 9, 2019in Journal of Management Studies5.84
Nicolai J. Foss72
Estimated H-index: 72
(Bocconi University),
Peter G. Klein30
Estimated H-index: 30
(Baylor University),
Christian Bjørnskov33
Estimated H-index: 33
(AU: Aarhus University)
Published on Sep 19, 2018in Oxford Review of Economic Policy2.39
Simon C. Parker36
Estimated H-index: 36
(UWO: University of Western Ontario)
"This article discusses economic theories of entrepreneurship, drawing principally on work conducted in labour economics, microeconomics, macroeconomics, and financial economics. The article explains how incentives and constraints of various kinds affect occupational choices and entrepreneurial innovation, as well as how entrepreneurial decisions affect macroeconomic performance. Implications for public policy are drawn."
Published on Apr 3, 2018in Computational Economics1.19
Edgardo Bucciarelli5
Estimated H-index: 5
(University of Chieti-Pescara),
Nicola Mattoscio3
Estimated H-index: 3
(University of Chieti-Pescara)
Drawing inspiration from a renowned critique of standard economics moved by Simon (Q J Econ 69(1):99–118, 1955, Am Econ Rev 49(3):253–283, 1959), the authors of this paper develop a novel experimental design moving beyond the hypothesis-testing framework traditionally based on the use of deductive logic, while introducing a new way suitable for addressing the problem of understanding the impact of fluctuations and uncertainty in business decision-making. As claimed in the paper, this can be achi...
Published on Jul 1, 2017in Technological Forecasting and Social Change3.81
Marta Peris-Ortiz7
Estimated H-index: 7
(Polytechnic University of Valencia),
João J. Ferreira20
Estimated H-index: 20
(UBI: University of Beira Interior),
Cristina I. Fernandes11
Estimated H-index: 11
(IPN: Instituto Politécnico Nacional)
The objective of this study involves identifying the influence of Total Early-stage entrepreneurial activities (TEA) over the propensity to engage in innovative practices in OECD member states. The study correspondingly applies aggregate data at the national level based upon the statistics gathered by the Global Entrepreneurship Monitor (GEM), the Organisation for Economic Co-operation and Development (OECD) in conjunction with the Global Competitive Index (GCI) for the years between 2009 and 20...
Published on Jun 30, 2017
The aim of this article is to present suggestions for future directions of research on entrepreneurship, with particular emphasis on different forms of entrepreneurship. The suggestions are preceded by a brief review of research on entrepreneurship. The article is theoretical in nature and does not present any own research, although its content is based on multiple years of experience in studying this phenomenon. The forms of entrepreneurship are discussed in terms of relationship with business,...
Magnus Henrekson32
Estimated H-index: 32
(Research Institute of Industrial Economics),
Mikael Stenkula9
Estimated H-index: 9
(Research Institute of Industrial Economics)
The surplus that is created in a successful entrepreneurial venture is much higher than the profit corresponding to the risk-adjusted market rate of return. The part of the surplus that exceeds this level may be enoted “entrepreneurial rent.” Such rents normally disappear in the long run but so-called isolating mechanisms ensure that these rents persist in the short or medium run. Entrepreneurial rents arise when successful entrepreneurship is exercised and entrepreneurial firms create and succe...
Published on Aug 1, 2016in Academy of Management Perspectives3.86
Christian Bjørnskov33
Estimated H-index: 33
(AU: Aarhus University),
Nicolai J. Foss72
Estimated H-index: 72
(Bocconi University)
We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on empirical research. Most of the literature has an economics orientation, but we also review relevant literature from other social sciences, including management research. The review helps identify a number of conceptual, theoretical, and empirical gaps, calling for further research. For example, the literature narrowly identifies entrepreneurship with start-ups and self-emp...
Published on Jul 1, 2016in European Economic Review1.71
David J. Teece72
Estimated H-index: 72
(University of California, Berkeley)
Mainstream economic theory has generally excluded consideration of the role of managers, which has, in turn, impaired its ability to explain resource allocation by, and heterogeneity among, firms. In the real world, managers are called on to fill entrepreneurial and leadership roles: sensing opportunities, developing and implementing viable business models, building capabilities, and guiding the organization through transformations. These entrepreneurial management tasks are part of the organiza...
Published on Jun 1, 2016in Small Business Economics3.56
Sidney G. Winter56
Estimated H-index: 56
(UPenn: University of Pennsylvania)
Abstract It is a familiar observation that entrepreneurship is not easily accommodated within the framework of neoclassical economic theory. Drawing inspiration from an ancient critique of neoclassicism by Veblen (Q J Econ 12(4):373–397, 1898), this paper attributes the difficulty to the tension between normative accounts of decision making (as in mainstream theory) and ideas of causation that are standard in the sciences. Normative theories naturally privilege the conjectured future over the ex...
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