We find strong evidence in the OECD country panel data to support the Knightian view that non-diversifiable economic risks shape the equilibrium entrepreneurship in an occupational choice model. Differential social insurance of entrepreneurial and labor risk is found to be statistically...

We find strong evidence in the OECD country panel data to support the Knightian view that non-diversifiable economic risks shape the equilibrium entrepreneurship in an occupational choice model. Differential social insurance of entrepreneurial and labor risk is found to be statistically...

This paper examines the optimal tax base in the profits tax with tangible and intagible capital and with positive external effects from investment in intangible capital. It is found that the optimal tax base adjustments for the two types of capital are determined by a compromise between the...

The US and US tax reforms of the 1980s created tendencies in the OECD countries to cut tax rates and broaden tax bases. Though several studies have indicated the efficiency gains of such reforms, our results suggest that a policy of rate-cut-cum-base-broadening may actually reduce long-run...

We present a novel theory of socially optimal initation in a model exhibiting strategic interaction between innovating and imitating firms. We demonstrate how the socially optimal innovation and imitation intensities can be implemented with subsidy policies, but not with patent policy, if the...