Can local government spending spur entrepreneurial activity? To answer this question we study a setting where, around multiple pre-determined and non-manipulable thresholds, municipalities with lower tax revenues receive direct and different monetary grants from the national budget. Employing a...

This article’s aim is to examine a dependency between local government administration at a municipal level and the level of local entrepreneurship. This paper attempts to answer the question of whether the size of the local government administration has features of stimulant or de-stimulant in...