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- W3045695859 abstract "We argue that the general understanding of the role of entrepreneurship in modern economies is hampered by the existence of various influential theories of entrepreneurship which are inconsistent with each other. In the present paper we attempt to reconcile two seminal economic theories of entrepreneurship: the static Lucas (1978) model, which predicts that the share of entrepreneurs in an economy depends on the distribution of entrepreneurial ability in the labor force, and the dynamic Jovanovic (1982) model, which predicts that over time, efficient firms grow and survive whereas inefficient firms decline and fail. We reconcile these two theories by relaxing some of the assumptions of the Lucas (1978) model, and assuming sequential stages of the entrepreneurial process. Our theory development leads to a number of hypotheses which we empirically test and confirm using a multi-country data base. We are thus able to reconcile both theories which greatly improves our understanding of how entrepreneurial economies function." @default.
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- W3045695859 date "2020-08-01" @default.
- W3045695859 modified "2023-10-17" @default.
- W3045695859 title "Reconciling Static and Dynamic Theories of Entrepreneurship" @default.
- W3045695859 doi "https://doi.org/10.5465/ambpp.2020.12831abstract" @default.
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