2024-03-29T05:09:50Zhttp://digital.csic.es/dspace-oai/requestoai:digital.csic.es:10261/2186452020-09-04T11:52:15Zcom_10261_120com_10261_7col_10261_373
Cultural transmission and persistence of entrepreneurship
Olcina, G.
Tur, Elena M.
Escriche, L.
Ministerio de Economía y Competitividad (España)
European Research Council
European Commission
Broman Foundation
Ministerio de Ciencia, Innovación y Universidades (España)
Agencia Estatal de Investigación (España)
This paper contributes to explain the persistence of differences in levels of entrepreneurship within and across countries. We provide an explanation based on the dynamic interplay between purposeful intergenerational transmission of preferences for entrepreneurship and public administration efficiency. Individuals vote on taxes, and the collected taxes fund the civil servants’ wages. The performance of the administration generating an efficient normative and regulatory environment, affects the success of entrepreneurship. We show that an economy can reach two different long-run equilibria: a traditional equilibrium, with a low proportion of entrepreneurs, high taxes and an inefficient administration and, an entrepreneurial equilibrium with a high proportion of entrepreneurs and, lower taxes but enough to implement an efficient administration. The equilibrium achieved depends on the tax policy followed by the different generations. If decisions are made by majority voting in a myopic way, then the initial conditions of the society become crucial. This result explains persistence: an economy evolves around similar levels of entrepreneurship unless some reforms are implemented.
2020-08-26T08:02:58Z
2020-08-26T08:02:58Z
2020
artículo
Small Business Economics 54: 155–172 (2020)
0921-898X
http://hdl.handle.net/10261/218645
10.1007/s11187-018-0089-2
1573-0913
http://dx.doi.org/10.13039/501100011033
http://dx.doi.org/10.13039/501100000780
http://dx.doi.org/10.13039/501100000781
http://dx.doi.org/10.13039/501100003329
eng
Publisher's version
https://doi.org/10.1007/s11187-018-0089-2
Sí
info:eu-repo/grantAgreement/MINECO/Plan Estatal de Investigación Científica y Técnica y de Innovación 2013-2016/ECO2014-58297-R
info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/ECO2017-87245-R
ECO2017-87245-R/AEI/10.13039/501100011033
info:eu-repo/grantAgreement/EC/FP7/324004
http://creativecommons.org/licenses/by/4.0/
openAccess
Springer Nature