business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … into entrepreneurship, we use changes in entry regulation into skilled trades. Estimation results are consistent with the …

. Critically, we find that comovement in investment has a negative effect on firm and industry performance and productivity growth …This paper examines the propensity of firms to comove in investment decisions. Although stock return comovement and … herding among investors received considerable attention in existing work, little is known about correlated investment behavior …