Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets

While previous studies established a negative relationship between total government spending & entrepreneurship, this paper studies a layer deeper, looking at the relationship between the composition of government spending and entrepreneurship under the assumption of credit market imperfections. The author finds a positive relationship between increasing the share of social and public goods relative to private subsidies and other forms of 'government consumption'.

2016

Academic Paper

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