informal investment in transition economies individual characteristics and clusters this paper investigates the factors driving informal investment in croatia hungary and slovenia using global entrepreneurship monitor gem data we find that the low rates of informal investment activity and the small amounts of investments in these countries are driven by entrepreneurial behaviors consistent with limited market economy experience we extend prior studies by investigating the role of business ownership and identify significant differences between individuals with and without business ownership experience in terms of having start up skills knowing an entrepreneur and fearing failure cluster analysis identifies seven distinct groups of informal investors and reveals the heterogeneity in terms of investors age gender level of education amount of investment start up skills ownership status income opportunity perception and country of residence

an investigation of market microstructure impacts on event study returns we investigate the importance of bid ask spread induced biases on event date returns as exemplified by seasoned equity offerings by nyse listed firms we document significant negative return biases on the offering day which explain a large portion of the negative event date return documented in the literature buy sell order flow imbalance is prominent around the offering and induces a relatively large spread bias if order imbalances are suspected the researcher can use returns calculated from the midpoint of the closing bid and ask quotes instead of returns calculated from closing transaction prices to avoid this return bias several studies document the impact of bid ask spreads on security return patterns which appear inconsistent with the informational efficiency of capital markets phillips and smith 1980 find spread induced bias to be important in explaining apparent arbitrage opportunities in the option markets lakonishok and smidt 1984 uncover evidence suggesting a relation between bid ask spreads and turn of the year seasonality in stock returns 1 keim 1989 and porter 1989 further document the empirical importance of

nonfarm employment and poverty in rural el salvador abstract this paper analyzes two complementary data sets to study poverty and the nonfarm sector in rural el salvador we find that rural poverty in el salvador remains acute and significantly higher than in urban areas while the rural poor are mainly agricultural laborers and marginal farmers some nonfarm activities are also of importance to the poor in fact nonfarm activities in el salvador account for a significant share of rural employment and income for both the poor and the nonpoor the poor on the one hand are engaged in last resort nonfarm activities that are not associated with high levels of labor productivity the nonpoor on the other are engaged in productive nonfarm activities which are likely to present a potent force for upward mobility significant correlates of these high productivity occupations include education infrastructure location and gender while most of the analysis is at the household level the data also permit some focus on small scale rural enterprise activities it appears that in el salvador very few rural enterprises report utilizing formal credit in setting up their activities in addition a significant proportion of enterprises are engaged in subcontracting arrangements with some larger often urban based firm

a bias in closing prices the case of the when issued pricing anomaly financial studies examining stock price behavior have principally relied on end of day data this paper illustrates a bias in closing prices by reexamining the when issue pricing anomaly with intraday data with intraday data major portions of the pricing anomaly can be explained by a nonsynchronous matching of trades a difference in the settlement procedures labeled time value of money in choi and strong 1983 a mismatching of market purchases with market sales first proposed by lamoureux and wansley 1989 and a higher frequency of market purchases relative to market sales in addition the small remaining portion of the anomaly cannot be arbitraged the remaining premium is attributed to a lower level of limit order competition and an order imbalance in the when issued shares

entrepreneurship human capital and labor demand a story of signaling and matching in contrast to employee qualifications there is no clear evidence that entrepreneurs qualifications positively affect their income in this study we propose that entrepreneurs can benefit from using their qualification as a signal during the process of recruiting employees this is assumed to follow a process of matching equals among equals we confirm a matching of qualification levels for highly skilled employees in denmark and an indication of this in germany partial support for matching among medium skilled employees was only found in germany with no consistent evidence of matching for low skilled employees in neither country this suggests that as skill levels of employees decrease their probabilities of working for different founders converge founders qualifications are the most reliable predictor of recruitment choices over time our findings are robust to numerous control variables as well as across industries and firm age

entrepreneurship and organization design we model entrepreneurship and the emergence of firms as an outcome of simultaneous bidding for labor services among heterogeneous agents what distinguishes our approach from prior work is that occupational choice and job matching are determined simultaneously so that the opportunity costs of entrepreneurs are accounted for those who are relatively unmanageable while possibly excellent managers themselves become entrepreneurs entrepreneurs compete and create value by building efficient organizations and offering potentially well paid jobs to others while the entry of an additional entrepreneur typically reduces some individual wages we show that it always raises the average wage and depresses the average income of incumbent entrepreneurs this result may help explain the empirically low returns to entrepreneurship

the bullwhip effect in closed loop supply chains a systematic literature review abstract the bullwhip effect or how uncertainty associated with the end customers demand propagates through the entire supply chain has been widely discussed in supply chain management literature although there is a well established research stream on the causes and mitigating factors for the bullwhip effect in forward supply chains few studies have investigated how this phenomenon manifests itself in closed loop supply chains we argue that this phenomenon can affect the supply chain s environmental performance by increasing emissions waste and consumption of natural resources aiming at filling this theoretical gap this article compares the causes and mitigating factors of the bullwhip effect in forward supply chains and closed loop supply chains to this end we employ a systematic literature review that combines bibliometric and content analyses the studies examined in our review indicate that the causes of the bullwhip effect in closed loop supply chains are similar to those in forward supply chains however most of the studies have not considered that the quality of returned products are different from the quality of their new counterparts products adding another variable into the complexity of a given supply chain which in turn could lead to higher variability thereby causing the bullwhip effect regarding mitigation we found that the primary mitigating factor is related to increasing the product return rate moreover we suggest that closing a supply chain can reduce the bullwhip effect which could lead to positive impacts in the environmental performance of supply chains

human capital versus sorting the effects of compulsory attendance laws under the educational sorting hypothesis a state compulsory school attendance law will increase the educational attainment of high ability workers who are not directly affected hy the law under the human capital hypothesis such laws affect only those individuals whose hehavior is directly constrained we find that compulsory attendance laws do increase enrollment rates in age groups they do not affect directly thus our results contradict the human capital hypothesis and are consistent with the sorting hypothesis i introduction the last decade has seen considerable debate between supporters of the human capital and sorting models of education the former assert that the effect of education on wages reflects increased productivity the latter maintain that it reflects at least in part correlation between education and unobserved ability workers use education to signal their ability while employers use education to screen workers despite the importance of the debate no fully convincing tests of the hypotheses have been developed in fact many members of the profession maintain at least privately that these hypotheses cannot be tested against each other and that the debate must therefore be relegated to the realm of ideology in this paper we show that the models can be tested against each other by examining the effects of state compulsory school attendance laws we show that under the human capital hypotheis such laws will affect the educational attainment only of those who in the absence of the law would have left school prior to the minimum school leaving age on the other hand under the sorting hypothesis the effects of the law will percolate through the system increasing educational attainment even among workers not directly constrained by the law our results are consistent with the predictions of the sorting model

a unified theory of the dynamics of closed loop supply chains we investigate the dynamics of a closed loop supply chain with first order auto regressive ar 1 demand and return processes we assume these two processes are cross correlated the remanufacturing process is subject to a random triage yield remanufactured products are considered as goodas new and used to partially satisfy market demand newly manufactured products make up the remainder we derive the optimal linear policy in our closed loop supply chain setting to minimise the manufacturer s inventory costs we show that the lead time paradox can emerge in many cases in particular the auto and cross correlation parameters and variances of the error terms in the demand and the returns as well as the remanufacturing lead time all influence the existence of the lead time paradox finally we propose managerial recommendations for manufacturers

an equilibrium model of search unemployment this paper develops a simple general equilibrium model with sequential search in which a nondegenerate wage offer distribution is endogenously determined we use this model to analyze the comparati

new business formation in a rapidly growing economy the irish experience the extraordinary growth of the irish economy since the mid 1990s the celtic tiger has attracted a great deal of interest commentary and research indeed many countries look to ireland as an economic development role model and it has been suggested that ireland might provide key lessons for other eu members as they seek to achieve the objectives set out in the lisbon agenda much of the discussion of ireland s growth has focused on its possible triggers the long term consequences of the late 1980s fiscal stabilisation eu structural funds education wage moderation and devaluation of the irish punt the industrial policy perspective has highlighted the importance of inflows of foreign direct investment but a notable absence from the discourse on the celtic tiger has been any mention of the role of new business venture creation and entrepreneurship in this paper we use unpublished irish vat data for the years 1988 2004 to provide the first detailed look at national trends in business birth and death rates in ireland over the take off period we also use sub national vat data to shed light on spatial trends in new venture creation our overall conclusions are that new business formation made no detectable contribution to the acceleration of ireland s growth in the late 1990s although we do find evidence of spatial convergence in per capita business stocks

could the irish miracle be repeated in hungary it is widely recognized that foreign direct investment fdi plays an important role in economic development however its impact on entrepreneurial activity has not been well researched internalization theory is used to explore how inward fdi impacts entrepreneurial activity using data from global entrepreneurship monitor gem we find significant differences in entrepreneurial activity between ireland and hungary in both the type of people starting businesses and the opportunities pursued economic development policies should focus on increasing human capital promoting enterprise development and upgrading the quality of fdi

the circular economy an interdisciplinary exploration of the concept and application in a global context there have long been calls from industry for guidance in implementing strategies for sustainable development the circular economy represents the most recent attempt to conceptualize the integration of economic activity and environmental wellbeing in a sustainable way this set of ideas has been adopted by china as the basis of their economic development included in both the 11th and the 12th five year plan escalating the concept in minds of western policymakers and ngos this paper traces the conceptualisations and origins of the circular economy tracing its meanings and exploring its antecedents in economics and ecology and discusses how the circular economy has been operationalized in business and policy the paper finds that while the circular economy places emphasis on the redesign of processes and cycling of materials which may contribute to more sustainable business models it also encapsulates tensions and limitations these include an absence of the social dimension inherent in sustainable development that limits its ethical dimensions and some unintended consequences this leads us to propose a revised definition of the circular economy as an economic model wherein planning resourcing procurement production and reprocessing are designed and managed as both process and output to maximize ecosystem functioning and human well being

a nonlinear principal component analysis of the relationship between budget rules and fiscal performance in the european union tests of the relationship between budget rules and fiscal performance are metric sensitive and arbitrary in the evaluation of the stringency of the rules in the aggregation of these evaluations in an index and in the imposition of a linearly specified model we propose a nonlinear principal component analysis to solve these problems and evaluate the relative disciplinary power of each rule a battery of panel regressions on 1980 2003 optimally transformed data relative to 12 eu countries confirms that upon controlling for standard economic political and institutional variables more stringent rules reduce fiscal imbalances and budget size

estimating the labor market signaling value of the ged this paper tests the labor market signaling hypothesis for the general educational development ged equivalency credential using a unique data set containing ged test scores and social security administration ssa earnings data we exploit variation in ged status generated by differential state ged passing standards to identify the signaling value of the ged net of human capital effects our results indicate that the ged signal increases the earnings of young white dropouts by 10 to 19 percent we find no statistically significant effects for minority dropouts

the pricing of when issued common stock a note a basic postulate of the theory of finance is that two equivalent financial claims will sell at the same price in a competitive financial market an occasion for testing this single price law of markets arises when new shares created as a result of a stock split are traded on a when issued basis since one old share entitles the holder to the same cash flow stream as a proportional number of when issued split shares the price of the old shares should be the same as the price of the when issued shares adjusted for the stock split factor however casual empiricism suggests that these two prices are seldom equal and that in virtually all cases the when issued share sells at a higher price adjusted for the split factor than the old share a possible explanation of this apparent price discrepancy lies in the transaction settlement procedures the settlement of when issued trading is not made until six business days after the new shares are distributed whereas trades in the old shares are settled five business days after the trade date in this note we investigate whether the price differential can be explained solely by the different settlement procedures and find that it cannot section i describes trading in when issued securities on the new york stock exchange nyse and discusses possible causes of this price discrepancy section ii describes the data used in this study and presents the empirical results additional discussion is in section iii and section iv contains concluding remarks

quantifying the bullwhip effect in closed loop supply chains the interplay of information transparencies return rates and lead times abstract the bullwhip effect manifests itself in the form of an increased order and inventory variability in the uppermost nodes of the supply chain this dynamic phenomenon is not yet well understood in closed loop supply chain settings despite their growing importance in modern societies pursuing circular economy opportunities indeed the problem specific literature has provided somewhat conflicting findings to better understand the bullwhip effect in closed loop systems we obtain expressions for the order and inventory variance amplification in four archetypes that differ in the structure of information transparency interestingly we observe that the impact of return rates and lead times on the system performance strongly depend on the degree of supply chain visibility this perspective allows us to revisit discrepancies in prior works we later move the study from the operational to the economic prism here we prove the existence of an optimal return rate and we derive its expression in the four closed loop supply chain archetypes we show that the optimal rate is dependent on the node s cost structure the lead times and the variability of demand properties of the different closed loop systems and relevant managerial implications are also discussed in our work

information distortion in a supply chain the bullwhip effect this article originally appeared in management science april 1997 volume 43 number 4 pp 546 558 published by the institute of management sciences consider a series of companies in a supply chain each of whom orders from its immediate upstream member in this setting inbound orders from a downstream member serve as a valuable informational input to upstream production and inventory decisions this paper claims that the information transferred in the form of orders tends to be distorted and can misguide upstream members in their inventory and production decisions in particular the variance of orders may be larger than that of sales and distortion tends to increase as one moves upstream a phenomenon termed bullwhip effect this paper analyzes four sources of the bullwhip effect demand signal processing rationing game order batching and price variations actions that can be taken to mitigate the detrimental impact of this distortion are also discussed

whom do new firms hire using the matched employer employee data set for denmark and information on the founders of new firms we analyze the hiring choices of all new firms that entered from 2003 to 2010 we develop a theoretical model in which the quality of a firm s employees determines its average cost a firm s productivity is based on its pre entry experience and persistent shocks and over time firms learn about their productivity the model predicts that more productive firms are larger and hire more talented employees which gives rise to various predictions about how pre entry experience firm growth rates and firm size influence the wages firms pay to their early hires we find that beginning with the time of entry larger firms consistently pay higher wages to their new hires these are firms with greater survival prospects at the time of entry based on the pre entry backgrounds of their founders and that grow at greater rates over time both of which are predictive of the wages paid to new hires from the time of entry onward our findings suggest workers are allocated to firms according to their abilities which can give rise to enduring firm capabilities

closed loop supply chains what reverse logistics factors influence performance this paper analyses the inventory and order flow dynamics in closed loop supply chains clscs in this kind of supply chains the reverse flow of materials entering the system for recycling purposes complicates the way in which inventories should be managed and replenishment policies should be designed specifically we analyse the relationships between some reverse logistics factors remanufacturing lead time return rate of recycled products reverse order policy and number of supply chain tiers on the order and inventory variance amplification we firstly perform a systematic literature review of the related studies secondly by adopting a difference equation math approach and design of experiment we perform a robust what if analysis of a clsc under a variety of operational and market conditions results show that ceteris paribus clsc outperforms a forward supply chain both in mono echelon and multi echelon structures and under both stationary and turbulent market demands furthermore reducing remanufacturing lead time and promoting information transparency may be crucial to improve clsc dynamics finally we use the research findings to provide interesting managerial consideration about how to reduce unnecessary operational members costs

relationship between individualist collectivist culture and entrepreneurial activity evidence from global entrepreneurship monitor data this paper examines how one dimension of national culture an individualist collectivist orientation is related to total entrepreneurial activity depending on the level of economic development measured by gdp per capita researchers have traditionally associated individualism with high rates of firm creation arguing that an orientation towards achievement and the pursuit of personal objectives dominant aspects in individualist cultures are determinants of entrepreneurial activity the current analysis shows that a country s culture correlates to entrepreneurship but cannot uphold the idea that higher levels of individualism mean higher rates of entrepreneurship using data from the global entrepreneurship monitor on 52 countries the results show that a country s entrepreneurship rate is negatively related to individualism when development is medium or low and positively related to individualism when the level of development is high thus individualism is not related to entrepreneurship in the same way in countries with differing levels of development

are nascent entrepreneurs jacks of all trades a test of lazear s theory of entrepreneurship with german data in a recent paper edward lazear proposed the jack of all trades view of entrepreneurship based on a coherent model of the choice between self employment and paid employment he shows that having a background in a large number of different roles increases the probability of becoming an entrepreneur the intuition behind this proposition is that entrepreneurs must have sufficient knowledge in a variety of areas to put together the many ingredients needed for survival and success in a business while for paid employees it suffices and pays to be a specialist in the field demanded by the job taken this study contributes to the entrepreneurship literature by empirically testing lazear s hypothesis using a large recent representative sample of the german population the empirical estimation takes the rare events nature of becoming a nascent entrepreneur and the regional stratification of the sample into account the results illustrate the statistical significance and economic importance of the jack of all t

internalization an event study test abstract the internalization theory of multinational firms proposes that direct international investment occurs when a firm has information related intangible assets with public good properties we find that firms with characteristics suggesting the presence of information based assets experience a significantly positive stock price reaction upon announcing a foreign acquisition on the other hand firms apparently lacking such assets experience at best zero abnormal returns upon announcing overseas acquisitions

redefining business success distinguishing between closure and failure new firms are believed to have high closure rates and these closures are believed to be failures but two u s census bureau data sources illustrate that these assumptions may not be justified the business information tracking series bits showed that about half of new employer firms survive beyond four years and the characteristics of business owners cbo showed that about a third of closed businesses were successful at closure the cbo also made it possible to compare results of models of business survival and business success but because of non response bias logit models were used similar to previous studies firms having more resources that were larger with better financing and having employees were found to have better chances of survival factors that were characteristic of closure such as having no start up capital and having a relatively young owner were also common in businesses considered successful at closure hence few defining factors can be isolated leading to true failures the significant proportion of businesses that closed while successful calls into question the use of business closure as a meaningful measure of business outcome it appears that many owners may have executed a planned exit strategy closed a business without excess debt sold a viable business or retired from the work force it is also worth noting that such inborn factors as race and gender played negligible roles in determining survivability and success at closure

employment stability in newly founded firms a matching approach using linked employer employee data from germany using a linked employer employee dataset and taking the perspective of individuals rather than firms this paper analyzes some effects of joining startups we show that entrants in new firms differ from those joining incumbent firms and we use a matching approach to compare a group of employees joining new firms in 1995 1996 with a control group entering incumbent firms our results indicate that individuals employment stability was higher in incumbent than in newly founded firms while their risk of becoming unemployed was lower in particular in eastern germany joining firms that were older than 6 years improved individuals employment prospects

stability vs flexibility the effect of regulatory institutions on opportunity type how entrepreneurial opportunities are formed and exploited depends upon the institutional environment in which they are embedded the varying amounts of risk and uncertainty across and within heterogeneous institutional environments have important implications for the types of opportunity developed while the international business and entrepreneurship literatures consider the effect of environmental risk and uncertainty on firms risk and uncertainty are often treated as interchangeable or synonymous and rarely are both considered to be present together to address this we develop a new theoretical model based on institutional economics describing how institutional arrangements promoting stability thus supporting an entrepreneur s ability to assess risk will lead to more imitative opportunities while institutions promoting flexibility thus supporting an entrepreneur s ability to respond to uncertainty by iterating will foster more innovative opportunities we test this framework using cross national data across 40 countries from the gem survey finding that institutional arrangements that promote stability do lead to more imitation while institutions that promote flexibility foster more innovation by treating risk and uncertainty as distinct constructs our study makes theoretical contributions to research on institutional environments and opportunity types with implications for future research on subsidiary initiatives the evolution of mnes and born global firms

the extension and exploitation of the inventory and order based production control system archetype from 1982 to 2015 in 1994 through classic control theory john naim and towill developed the automatic pipeline inventory and order based production control system apiobpcs which extended the original iobpcs archetype developed by towill in 1982 well recognised as a base framework for a production planning and control system due to the prevalence of the two original models in the last three decades in the academic and industrial communities this paper aims to systematically review how the iobpcs archetypes have been adopted exploited and adapted to study the dynamics of individual production planning and control systems and whole supply chains using various databases such as scopus web of science google scholar 111 papers we found that the iobpcs archetypes have been studied regarding the a modification of four inherent policies related to forecasting inventory lead time and pipeline to create a family of models b adoption of the iobpcs family to reduce supply chain dynamics and in particular bullwhip c extension of the iobpcs family to represent different supply chain scenarios such as order book based production control and closed loop processes simulation is the most popular method adopted by researchers and the number of works based on discrete time based methods is greater than those utilising continuous time approaches most studies are conceptual with limited practical applications described future research needs to focus on cost flexibility and sustainability in the context of supply chain dynamics and although there are a few existing studies more analytical approaches are required to gain robust insights into the influence of nonlinear elements on supply chain behaviour also empirical exploitation of the existing models is recommended

migration and imperfect labor markets theory and cross country evidence from denmark germany and the uk we investigate the labor market effects of immigration in denmark germany and the uk three countries which are characterized by considerable differences in labor market institutions and welfare states institutions such as collective bargaining minimum wages employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks and hence the labor market effects of immigration we employ a wage setting approach which assumes that wages decline with the unemployment rate albeit imperfectly we find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock in germany immigration involves only moderate wage but large unemployment effects since immigrants are concentrated in labor market segments with low wage flexibility the reverse is true for the uk and denmark

entrepreneur human capital endowments and minority business viability this study analyzes the relationship between entrepreneur human capital endowments and minority enterprise profitability the better educated subset of entrepreneurs earns high profits relative to their minority business counterparts and the lines of business in which they are concentrating lie outside the retail and personal service areas that have traditionally dominated minority business activity in addition to fostering industrial diversity by creating and expanding firms in heavy construction manufacturing and skill intensive services the better educated entrepreneur group is found to be utilizing effectively both its financial and human capital inputs

do newly founded firms pay lower wages first evidence from germany using a linked employer employee data set for germany this paper analyses wage setting in a cohort of newly founded and other establishments from 1997 to 2001 while theory provides alternative explanations for higher or lower wages in newly founded firms we show empirically that start ups tend to pay lower wages ceteris paribus on average wages in newly founded establishments are 8 lower than in similar incumbent firms this negative wage differential is substantially smaller in eastern than in western germany the wage differ ential is shown to decline over time as the newly founded firms become more mature

record date when issued and ex date effects in stock splits negative abnormal stock returns of about 1 occur near record dates of stock splits fur ther the lower the returns the more positive are ex date returns and when issued premi ums a possible explanation of these related phenomena is that trading hindrances asso ciated with record dates create trading inconvenience that is reflected in lower prices near record dates in turn anomalous positive ex date returns arise in part from the abnormally low prices of unsplit shares caused by the negative record date returns

determinants and effects of new business creation using global entrepreneurship monitor data this paper is an introduction to the present special issue dedicated to scientific research using data collected as part of the global entrepreneurship monitor gem and considering new venture creation as the hallmark of entrepreneurship after a short description of gem s theoretical and methodological background this introduction highlights the main results of seven papers which were presented at the first gem research conference in berlin from 1 to 3 april 2004 first there is empirical evidence that the role of entrepreneurial activity differs across the stages of economic development in that there appears to be a u shaped relationship between the level of development and the rate of entrepreneurship consequently a positive effect of entrepreneurial activity on economic growth is found for highly developed countries but a negative effect for developing nations second it is shown that different types of entrepreneurship may have a different impact on a nation s innovativeness and economic growth rate in particular potentially high growth business start ups and so called opportunity entrepreneurship enhance knowledge spillovers and economic growth third entrepreneurship is again shown to be a regional event that can only be understood if regional framework conditions including networks and regional policies are taken into consideration

entrepreneurship and local economic resilience the impact of institutional hysteresis in peripheral places this article examines how the legacies of the past in peripheral post industrial places serve to shape current and future entrepreneurial activity and with it local economic resilience drawing on in depth qualitative interviews with key regional stakeholders the article reveals how peripheral post industrial places are constrained by their histories this is found to be manifest in different ways such as low aspirations generational unemployment and a loss of identity which are in turn compounded by negative perceptions of place and opportunity these issues culminate in institutional hysteresis at the local level and constrain entrepreneurial ambition the article argues that the rigidity and reproduction of informal institutions continues to stymie economic resilience and growth we conclude by reflecting on the implications for entrepreneurship in peripheral post industrial places as well as with recommendations for policy

the post entry performance of new small firms in german manufacturing industries while recent years have witnessed a growing interest in research on market entry by new firms evidence regarding their postentry performance is scarce this paper uses longitudinal data for small firms that entered german manufacturing industries between 1979 and 1982 and monitors their performance until 1990 entrants face a high risk of failure hazard rates tend to increase during the first years and to decrease afterwards decline of employment in a cohort due to exits and shrinking firms is compensated by growing survivors no clear cut nexus between start up size and probability of survival shows up copyright 1994 by blackwell publishing ltd

new zealand s perfect storm of entrepreneurship and economic development applying a grounded theory approach to analyzing the global entrepreneurship monitor gem data we attempt to explain why new zealand exhibits only a moderate level of economic development despite its high level of entrepreneurship by statistically analyzing why 34 other countries in the 2005 gem dataset exhibit small deviations from the classical quadratic curvilinear relationship between entrepreneurship and economic development we develop a better understanding of the entrepreneurial framework conditions underlying new zealand s large deviation from this trend line based on our findings from the gem data we make policy recommendations that could aid in moving new zealand and other countries closer toward the trend line and thus promote economic development

components of short horizon individual security returns abstract in this paper we present a simple model which relates security returns to three components an expected return a bid ask error and white noise the relative importance of the various components is empirically assessed and the model s ability to explain the various time series properties of individual security and portfolio returns is tested time varying expected returns and bid ask errors are found to explain substantial proportions up to 24 of the variance of security returns we also reconcile the typically negative autocorrelation in security returns with the strong positive autocorrelation in portfolio returns

entrepreneurs optimism and new venture performance a social cognitive perspective previous research indicates that entrepreneurs are generally high in dispositional optimism the tendency to expect positive outcomes even when such expectations are not rationally justified findings of the current study demonstrate a negative relationship between entrepreneurs optimism and the performance revenue and employment growth of their new ventures past experience creating ventures and industry dynamism moderated these effects strengthening the negative relationship between entrepreneurs optimism and venture performance these findings illustrate the benefits of applying a social cognitive perspective toward efforts to understand key aspects of the new venture creation and development process

entrepreneurial opportunities in peripheral versus core regions in chile governmental policies tend to support and boost entrepreneurship in peripheral regions in many countries this research revives the debate about specific regional policies designed to foster local new business creation and the entrepreneurial framework conditions needed at the regional level for emerging regions such as latin america we applied one of the global entrepreneurship monitor s methodologies the national experts survey to a sample of 695 key informants in chile at eight regions of which six are classified as peripheral using non parametric statistics we compared the differences between peripheral and core regions the main results indicate that peripherally located entrepreneurship experts perceive their regions as in a worse position than centrally located experts in terms of finance access and physical infrastructure on the other hand the results indicate that peripheral entrepreneurship experts detect more market dynamism in their regions and surprisingly perceive general policy and government programs as supporting entrepreneurship although the chilean government had not promoted many regional policies

the location of markets perceived entrepreneurial risk and start up capital of micro rural firms it is argued that when founders of smes perceive the probability of a successful and lucrative venture to be greater they are more likely to provide a greater proportion of the start up capital this paper provides an empirical examination of two concurrent hypotheses firstly that the size of the debt or equity is affected by factors influencing perceived entrepreneurial risk secondly that the location of the market for the firm s output is a major factor reducing perceived entrepreneurial risk and increasing equity of the start up capital a statistical analysis based on the simultaneous tobit model is used results show that significant factors influencing risk perception include the size of the new business and the sector of economic activity as well as entrepreneurial experience and the location of the markets for the firm s output the results highlight implications for the design and implementation of rural development policies and especially for the instruments supporting rural business creation