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Vol. 88, No. 2
Posted 2006-03-01

Entrepreneurship and the Policy Environment

by Yannis Georgellis and Howard J. Wall

The authors examine how the government-policy environment effects entrepreneurship, specifically if marginal income tax rates and bankruptcy exemptions influence rates of entrepreneurship. Previous work has shown both policies are positively related to entrepreneurship, but these authors show a U-shaped relationship with marginal tax rates and an S-shaped relationship with bankruptcy exemptions.

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