This paper Integrates three major traditions of economic thought into a model of entrepreneurial decision making. Several testable hypotheses are formulated, and the model Is estimated using a 33-year sample of aggregate time-series data for the U.S.
Get full access to this article
View all access options for this article.
References
1.
AcsZ. J., & AudretschD. B. (1988). Innovation in large and small firms: An empirical analysis.American Economic Review, 78, 678–690.
2.
BeckerE. H. (1984). Self-employed workers: An update to 1983.Monthly Labor Review, 107, 14–18.
3.
BegleyT. M., & BoydD. P. (1987). Psychological characteristics associated with performance in entrepreneurial firms and smaller businesses.Journal of Business Venturing, 2, 79–93.
4.
BlauD. M. (1987). A time-series analysis of self-employment in the United States.Journal of Political Economy, 95, 445–467.
5.
BrockW. A., & EvansD. S. (1989). Small business economics.Small Business Economics, 1, 7–20.
6.
BrockhausR. H. (1980). Risk taking propensity of entrepreneurs.Academy of Management Journal, 23, 509–520.
7.
BygraveW. D., & HoferC. W. (1991). Theorizing about entrepreneurship.Entrepreneurship Theory and Practice, 16(2), 13–22.
8.
CampbellC. A. (1992). A decision theory model for entrepreneurial acts.Entrepreneurship Theory and Practice, 17(1), 21–27.
9.
CheahH. B. (1990). Schumpeterian and Austrian entrepreneurship: Unity within duality.Journal of Business Venturing, 5, 341–347.
10.
CaponeC. A., & CaponeB. H. (1992). Rational entry into risky markets with negative expected returns: The role of biased misestimation of profit potential.Journal of Economic Behavior and Organization, 18, 415–425.
11.
CochraneD., & OrcuttG. H. (1949). Application of least-squares regression to relationships containing auto-correlated error terms.Journal of the American Statistical Association, 44, 32–61.
12.
Council of Economic Advisors. (1994). Economic report of the president.Washington, DC: U.S. Government Printing Office.
13.
EggeK. A. (1987). Expectations vs. reality among founders of recent start-ups. In ChurchillN. C., HornadayJ. A., KirchhoffB. A., KrasnerO. J., & VesperK. H., (Eds.), Frontiers of entrepreneurship research, pp. 322–336. Wellesley, MA: Babson College.
14.
EvansD. S., & JovanovichB. (1989). An estimated model of entrepreneurial choice under liquidity constraints.Journal of Political Economy, 97, 808–827.
15.
EvansD. S., & LeightonL. S. (1989). Some empirical aspects of entrepreneurship.American Economic Review, 79, 519–535.
16.
GundersonG. (1990). Thinking about entrepreneurs: Models, assumptions, and evidence. In KentC. A. (Ed.), Entrepreneurship: Current developments, future directions, pp. 41–52. New York: Quorum Books.
17.
GustafsonJ. W. (1992). Entrepreneurship, ideology, and economic theory: An appraisal.Journal of Economics, 18, 1–7.
18.
HebértR. F., & LinkA. N. (1989). In search of the meaning of entrepreneurship.Small Business Economics, 1, 39–49.
19.
HoferC. W. (1975). Toward a contingency theory of business strategy.Academy of Management Journal, 18, 784–810.
20.
HornadayJ. A., & ChurchillN. C. (1987). Current trends in entrepreneurial research. In ChurchillN. C., HornadayJ. A., KirchhoffB. A., KrasnerO. J., & VesperK. H., (Eds.), Frontiers of entrepreneurship research, pp. 1–21. Wellesley, MA: Babson College.
21.
KentC. A. (1990). Entrepreneurship education at the collegiate level: A synopsis and evaluation. In KentC. A. (Ed.), Entrepreneurship education: Current developments, future directions, pp. 111–122. New York: Quorum Books.
22.
KhanB. Z., & SokoloffK. L. (1993). “Schemes of practical utility”: Entrepreneurship and innovation among “great inventors” in the United States, 1790-1865.Journal of Economic History, 53, 289–307.
23.
KirchhoffB. A. (1989). Creative destruction among industrial firms in the United States.Small Business Economics, 1, 161–173.
24.
KirznerI. (1973). Competition and entrepreneurship.Chicago: University of Chicago Press.
25.
KnightF. H. (1921). Risk, uncertainty, and profit.Boston: Houghton Mifflin. Reprinted in 1967.
26.
LeibensteinH. (1968). Entrepreneurship and development.American Economic Review, 58, 72–83.
27.
ReinganumJ. (1983). Uncertain innovation and the persistence of monopoly.American Economic Review, 73, 741–748.
28.
SchererF. M. (1984). Innovation and growth: Schumpeterian perspectives.Cambridge, MA: MIT Press.
29.
SchultzT. W. (1975). The value of the ability to deal with disequilibria.Journal of Economic Literature, 13, 827–846.
30.
SchultzT. W. (1980). Investment in entrepreneurial ability.Scandinavian Journal of Economics, 82, 437–448.
31.
SchumpeterJ. A. (1934). The theory of economic development. Translated by R. Opie from the second German edition [1926]. Cambridge, MA: Harvard University Press.
32.
SchumpeterJ. A. (1950). Capitalism, socialism, and democracy (third ed). New York: Harper & Row.
33.
SextonE. A., & RobinsonP. B. (1989). The economic and demographic determinants of self-employment. In BrockhausR. H.Sr., ChurchillN. C., KatzJ. A., KirchhoffB. A., VesperK. H., & WetzelW. E.Jr. (Eds.), Frontiers of entrepreneurship research.Wellesley, MA: Babson College.
34.
SzpiroG. (1986). Measuring risk aversion: An alternative approach.Review of Economics and Statistics, 68, 156–159.
35.
U.S. Department of Commerce. (Annual).Statistical Abstract of the United States.Washington, DC: U.S. Government Printing Office.
