Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets

Previous studies have established a negative relationship between total government spending and entrepreneurship activity. However, the relationship between the composition of government spending and entrepreneurial activity has been woefully under...

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Main Author:	Islam, Asif
Format:	Publications & Research
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015
Subjects:	BENCHMARK BENEFICIARIES BORROWING BUSINESS ANGEL BUSINESS ANGELS BUSINESS ECONOMICS BUSINESS OWNERSHIP CAPITA GROWTH CAPITAL INVESTMENT COMPETITIVE MARKETS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET FAILURES CURRENCY DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVELS EDUCATION QUALIFICATION EDUCATION SPENDING EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ACTIVITIES ENTREPRENEURIAL ACTIVITY ENTREPRENEURIAL SUCCESS ENTREPRENEURS EXPECTED RETURNS EXPENDITURES EXTERNALITIES FEMALE ENTREPRENEURSHIP FISCAL POLICY FUNDING SOURCE GDP PER CAPITA GENDER GENERAL EQUILIBRIUM ANALYSIS GOVERNMENT CONSUMPTION GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT FINANCE STATISTICS GOVERNMENT INTERVENTION GOVERNMENT INVOLVEMENT GOVERNMENT REGULATIONS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH RATE HEALTH SPENDING HOLDING HOUSING HUMAN CAPITAL INCOME STREAM INFLATION INFORMATION INFRASTRUCTURE INTEREST RATE INTERNATIONAL BANK INTERNATIONAL MONETARY FUND INVESTMENT SPENDING JOB CREATION LEVEL OF RISKS MACROECONOMIC CONTROLS MACROECONOMICS MARKET FAILURE MARKET FAILURES MICRO ENTERPRISES MONETARY FUND MORAL HAZARD NETWORK EXTERNALITIES NEW BUSINESSES OPPORTUNITY COST OPPORTUNITY COSTS POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EXTERNALITIES PRIVATE INVESTMENT PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATE SECTOR PROPERTY RIGHTS PUBLIC PUBLIC GOOD PUBLIC GOODS REAL GDP RECESSION RENT SEEKING RETURN RETURNS SAFETY NETS SELF EMPLOYMENT SELF-EMPLOYMENT SHARE OF INVESTMENT SMALL BUSINESS SOCIAL NETWORK SOCIAL SECURITY SOCIAL SECURITY SPENDING START-UP START-UPS WAGES WELFARE BENEFITS
Online Access:	http://documents.worldbank.org/curated/en/2015/01/23795625/entrepreneurship-allocation-government-spending-under-imperfect-markets http://hdl.handle.net/10986/21382

id	okr-10986-21382
recordtype	oai_dc
spelling	okr-10986-213822021-04-23T14:04:02Z Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets Islam, Asif BENCHMARK BENEFICIARIES BORROWING BUSINESS ANGEL BUSINESS ANGELS BUSINESS ECONOMICS BUSINESS OWNERSHIP CAPITA GROWTH CAPITAL INVESTMENT COMPETITIVE MARKETS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET FAILURES CURRENCY DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVELS EDUCATION QUALIFICATION EDUCATION SPENDING EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ACTIVITIES ENTREPRENEURIAL ACTIVITY ENTREPRENEURIAL SUCCESS ENTREPRENEURS EXPECTED RETURNS EXPENDITURES EXTERNALITIES FEMALE ENTREPRENEURSHIP FISCAL POLICY FUNDING SOURCE GDP PER CAPITA GENDER GENERAL EQUILIBRIUM ANALYSIS GOVERNMENT CONSUMPTION GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT FINANCE STATISTICS GOVERNMENT INTERVENTION GOVERNMENT INVOLVEMENT GOVERNMENT REGULATIONS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH RATE HEALTH SPENDING HOLDING HOUSING HUMAN CAPITAL INCOME STREAM INFLATION INFORMATION INFRASTRUCTURE INTEREST RATE INTERNATIONAL BANK INTERNATIONAL MONETARY FUND INVESTMENT SPENDING JOB CREATION LEVEL OF RISKS MACROECONOMIC CONTROLS MACROECONOMICS MARKET FAILURE MARKET FAILURES MICRO ENTERPRISES MONETARY FUND MORAL HAZARD NETWORK EXTERNALITIES NEW BUSINESSES OPPORTUNITY COST OPPORTUNITY COSTS POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EXTERNALITIES PRIVATE INVESTMENT PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATE SECTOR PROPERTY RIGHTS PUBLIC PUBLIC GOOD PUBLIC GOODS REAL GDP RECESSION RENT SEEKING RETURN RETURNS SAFETY NETS SELF EMPLOYMENT SELF-EMPLOYMENT SHARE OF INVESTMENT SMALL BUSINESS SOCIAL NETWORK SOCIAL SECURITY SOCIAL SECURITY SPENDING START-UP START-UPS WAGES WELFARE BENEFITS Previous studies have established a negative relationship between total government spending and entrepreneurship activity. However, the relationship between the composition of government spending and entrepreneurial activity has been woefully under-researched. This paper fills this gap in the literature by empirically exploring the relationship between government spending on social and public goods and entrepreneurial activity under the assumption of credit market imperfections. By combining macroeconomic government spending data with individual-level entrepreneurship data, the analysis finds a positive relationship between increasing the share of social and public goods at the cost of private subsidies and entrepreneurship while confirming a negative relationship between total government consumption and entrepreneurial activity. The implication may be that expansion of total government spending includes huge increases in private subsidies, at the cost of social and public goods, and is detrimental for entrepreneurship. 2015-02-03T15:06:26Z 2015-02-03T15:06:26Z 2015-01 http://documents.worldbank.org/curated/en/2015/01/23795625/entrepreneurship-allocation-government-spending-under-imperfect-markets http://hdl.handle.net/10986/21382 English en_US Policy Research Working Paper;No. 7163 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BENCHMARK BENEFICIARIES BORROWING BUSINESS ANGEL BUSINESS ANGELS BUSINESS ECONOMICS BUSINESS OWNERSHIP CAPITA GROWTH CAPITAL INVESTMENT COMPETITIVE MARKETS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET FAILURES CURRENCY DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVELS EDUCATION QUALIFICATION EDUCATION SPENDING EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ACTIVITIES ENTREPRENEURIAL ACTIVITY ENTREPRENEURIAL SUCCESS ENTREPRENEURS EXPECTED RETURNS EXPENDITURES EXTERNALITIES FEMALE ENTREPRENEURSHIP FISCAL POLICY FUNDING SOURCE GDP PER CAPITA GENDER GENERAL EQUILIBRIUM ANALYSIS GOVERNMENT CONSUMPTION GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT FINANCE STATISTICS GOVERNMENT INTERVENTION GOVERNMENT INVOLVEMENT GOVERNMENT REGULATIONS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH RATE HEALTH SPENDING HOLDING HOUSING HUMAN CAPITAL INCOME STREAM INFLATION INFORMATION INFRASTRUCTURE INTEREST RATE INTERNATIONAL BANK INTERNATIONAL MONETARY FUND INVESTMENT SPENDING JOB CREATION LEVEL OF RISKS MACROECONOMIC CONTROLS MACROECONOMICS MARKET FAILURE MARKET FAILURES MICRO ENTERPRISES MONETARY FUND MORAL HAZARD NETWORK EXTERNALITIES NEW BUSINESSES OPPORTUNITY COST OPPORTUNITY COSTS POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EXTERNALITIES PRIVATE INVESTMENT PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATE SECTOR PROPERTY RIGHTS PUBLIC PUBLIC GOOD PUBLIC GOODS REAL GDP RECESSION RENT SEEKING RETURN RETURNS SAFETY NETS SELF EMPLOYMENT SELF-EMPLOYMENT SHARE OF INVESTMENT SMALL BUSINESS SOCIAL NETWORK SOCIAL SECURITY SOCIAL SECURITY SPENDING START-UP START-UPS WAGES WELFARE BENEFITS
spellingShingle	BENCHMARK BENEFICIARIES BORROWING BUSINESS ANGEL BUSINESS ANGELS BUSINESS ECONOMICS BUSINESS OWNERSHIP CAPITA GROWTH CAPITAL INVESTMENT COMPETITIVE MARKETS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET FAILURES CURRENCY DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC THEORY EDUCATION LEVELS EDUCATION QUALIFICATION EDUCATION SPENDING EMPLOYMENT STATUS ENTREPRENEUR ENTREPRENEURIAL ACTIVITIES ENTREPRENEURIAL ACTIVITY ENTREPRENEURIAL SUCCESS ENTREPRENEURS EXPECTED RETURNS EXPENDITURES EXTERNALITIES FEMALE ENTREPRENEURSHIP FISCAL POLICY FUNDING SOURCE GDP PER CAPITA GENDER GENERAL EQUILIBRIUM ANALYSIS GOVERNMENT CONSUMPTION GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT FINANCE STATISTICS GOVERNMENT INTERVENTION GOVERNMENT INVOLVEMENT GOVERNMENT REGULATIONS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH RATE HEALTH SPENDING HOLDING HOUSING HUMAN CAPITAL INCOME STREAM INFLATION INFORMATION INFRASTRUCTURE INTEREST RATE INTERNATIONAL BANK INTERNATIONAL MONETARY FUND INVESTMENT SPENDING JOB CREATION LEVEL OF RISKS MACROECONOMIC CONTROLS MACROECONOMICS MARKET FAILURE MARKET FAILURES MICRO ENTERPRISES MONETARY FUND MORAL HAZARD NETWORK EXTERNALITIES NEW BUSINESSES OPPORTUNITY COST OPPORTUNITY COSTS POLITICAL ECONOMY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EXTERNALITIES PRIVATE INVESTMENT PRIVATE PROPERTY PRIVATE PROPERTY RIGHTS PRIVATE SECTOR PROPERTY RIGHTS PUBLIC PUBLIC GOOD PUBLIC GOODS REAL GDP RECESSION RENT SEEKING RETURN RETURNS SAFETY NETS SELF EMPLOYMENT SELF-EMPLOYMENT SHARE OF INVESTMENT SMALL BUSINESS SOCIAL NETWORK SOCIAL SECURITY SOCIAL SECURITY SPENDING START-UP START-UPS WAGES WELFARE BENEFITS Islam, Asif Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
relation	Policy Research Working Paper;No. 7163
description	Previous studies have established a negative relationship between total government spending and entrepreneurship activity. However, the relationship between the composition of government spending and entrepreneurial activity has been woefully under-researched. This paper fills this gap in the literature by empirically exploring the relationship between government spending on social and public goods and entrepreneurial activity under the assumption of credit market imperfections. By combining macroeconomic government spending data with individual-level entrepreneurship data, the analysis finds a positive relationship between increasing the share of social and public goods at the cost of private subsidies and entrepreneurship while confirming a negative relationship between total government consumption and entrepreneurial activity. The implication may be that expansion of total government spending includes huge increases in private subsidies, at the cost of social and public goods, and is detrimental for entrepreneurship.
format	Publications & Research
author	Islam, Asif
author_facet	Islam, Asif
author_sort	Islam, Asif
title	Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
title_short	Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
title_full	Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
title_fullStr	Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
title_full_unstemmed	Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets
title_sort	entrepreneurship and the allocation of government spending under imperfect markets
publisher	World Bank Group, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/01/23795625/entrepreneurship-allocation-government-spending-under-imperfect-markets http://hdl.handle.net/10986/21382
_version_	1764448101345525760

Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets

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