Current literature suggests that informationspillovers, particularly those resulting from entrepreneurial activity,generate economic growth.In light of these productive spillovers, it isreasonable to subsidize entrepreneurial activity through the taxsystem. There are several hypotheses...

Entrepreneurial activity is presumed to generate important spillovers, potentially justifying tax subsidies. How does the tax law affect individual incentives? How much of an impact has it had in practice? We first show theoretically that taxes can affect the incentives to be an entrepreneur due...

Entrepreneurial activity is presumed to generate important spillovers, potentially justifying tax subsidies. How does the tax law affect individual incentives? How much of an impact has it had in practice? We first show theoretically that taxes can affect the incentives to be an entrepreneur due...