Details

Autor(en) / Beteiligte

• Sobel, Russell S.
• Clark, J. R.
• Lee, Dwight R.

Titel

Freedom, barriers to entry, entrepreneurship, and economic progress

Ist Teil von

• The Review of Austrian economics, 2007-12, Vol.20 (4), p.221-236

Ort / Verlag

New York: Springer Nature B.V

Erscheinungsjahr

2007

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• While entrepreneurs benefit from unrestricted free entry into markets, they have a time-inconsistent incentive to lobby for government entry restrictions once they become successful. Bad political institutions yield to these demands, and growing barriers are placed on domestic and international competition. Good institutions do not, and this effort is instead channeled toward further wealth creation. We find that productive entrepreneurship depends on both the freedom to succeed and discipline of failure that free markets provide. Trade barriers result in fewer combinations of goods and inputs attempted, and less productive entrepreneurial resource use. We also provide evidence on the value of business failure. [PUBLICATION ABSTRACT]