Public Policy and the Economics of Entrepreneurship

by Douglas Holtz-Eakin and Harvey S. Rosen (Eds.)

• ISBN13: 9780262083294
• ISBN10: 0262083299
• Format: Hardcover
• Copyright: 2004-01-01
• Publisher: Mit Pr

Summary

Entrepreneurship has been a subject of much recent discussion among academics and policymakers because of the belief that it invigorates the economy-producing greater productivity, more jobs, and higher economic growth. President George W. Bush promoted his economic plan by pointing to its encouragement of entrepreneurship. Yet, despite its importance, the topic of entrepreneurship is underrepresented in the economics literature. The contributors to Public Policy and the Economics of Entrepreneurshipexamine different aspects of entrepreneurship and its relation to public policy to help us reach a better understanding of the economic role of entrepreneurs. The contributors, all prominent economists, first consider what policies effectively encourage entrepreneurship, discussing a possible role for government in venture capital markets, the effect of the tax code's subsidy of health insurance for the self-employed, and the impact of banking deregulation on entrepreneurial activity. Two contributors then examine entrepreneurship in "unexpected places"-not small businesses, but large pharmaceutical firms and nonprofit organizations. The final essays explore the effect of entrepreneurship on inequality, looking at statistical evidence of upward mobility for self-employed blacks and Hispanics and discussing the effect on entrepreneurial activity of policies to reduce wealth inequality. The contributors hope, by offering a rigorous economic examination of entrepreneurship, to foster better public policies that encourage and support entrepreneurial activity. Contributors: Sandra E. Black, Joseph J. Cordes, Robert Fairlie, Douglas Holtz- Eakin, Josh Lerner, Frank R. Lichtenberg, Carolyn M. Moehling, Craig Perry, Harvey S. Rosen, Philip E. Strahan, Robert H. Steckel, C. Eugene Steuerle, Eric Twombly.

Table of Contents

Introduction	vii
1 When Bureaucrats Meet Entrepreneurs: The Design of Effective 'Public Venture Capital' Programs	1	(22)
Josh Lerner
2 The Self-Employed Are Less Likely to Have Health Insurance Than Wage Earners. So What?	23	(36)
Craig William Perry and Harvey S. Rosen
3 Business Formation and the Deregulation of the Banking Industry	59	(24)
Sandra E. Black and Philip E. Strahan
4 Public Policy and Innovation in the U.S. Pharmaceutical Industry	83	(32)
Frank R. Lichtenberg
5 Dimensions of Nonprofit Entrepreneurship: An Exploratory Essay	115	(38)
Joseph J. Cordes, C. Eugene Steuerle, and Eric Twombly
6 Does Business Ownership Provide a Source of Upward Mobility for Blacks and Hispanics?	153	(28)
Robert W. Fairlie
7 Entrepreneurial Activity and Wealth Inequality: A Historical Perspective	181	(30)
Carolyn M. Moehling and Richard H. Steckel
Index	211