SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

Abstract: We review and evaluate some recent contributions on the modeling of entrepreneurship within a neoclassical framework, analyzing how and to what extent the fundamental ingredients suggested in the social science literature were captured. We show how these approaches are important in stressing the main elements of a complex picture without being able to completely describe it. However, each modeling attempt focuses only on one specific feature of entrepreneurship. The entrepreneurial function broadly perceived eludes analytical tractability. As a consequence, the models can be useful in analyzing the effect of entrepreneurial behavior at an aggregate level, but not at explaining individual choices. From these observations we highlight how a simplistic interpretation of the existing mainstream approaches incorporating entrepreneurship runs the risk of leading to distortionary policy interventions.

Keywords: Entrepreneurial Choice; Entrepreneurship; Innovation; Neoclassical Modeling; Uncertainty

JEL-codes: B41; D81; J23; L23; M13; O31

24 pages, First version: January 31, 2005. Revised: March 29, 2005. Earlier revisions: February 2, 2005, February 22, 2005, March 18, 2005.

Full text files

hastef0584.pdf  Full text

Download statistics

Published as

Milo Bianchi and Magnus Henrekson, (2005), 'Is Neoclassical Economics still Entrepreneurless?', Kyklos, vol 58, no 3, pages 353-377

• Stockholm School of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-11 18:19:15.