December 2013
Intermediate to advanced
1176 pages
41h 52m
English
Content preview from Handbook of Economic Growth
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Chapter 1
Culture, Entrepreneurship, and Growth
Matthias Doepke* and Fabrizio Zilibotti†, *Department of Economics, Northwestern University and NBER, 2001 Sheridan Road, Evanston, IL 60208, USA, †Department of Economics, University of Zurich, Muehlebachstrasse 86, Zurich, CH 8008, Switzerland, doepke@northwestern.edu, fabrizio.zilibotti@econ.uzh.ch
Abstract
We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile. As a consequence, the occupational choice of entrepreneurship hinges on risk tolerance ...
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