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Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures
- Source :
- Economics of Disasters and Climate Change
- Publication Year :
- 2020
- Publisher :
- Elsevier BV, 2020.
-
Abstract
- In light of the COVID-19 pandemic, we scrutinize what has been established in the literature on whether entrepreneurship can cause and resolve extreme events, the immediate and long-run impacts of extreme events on entrepreneurship, and whether extreme events can positively impact (some) entrepreneurship and innovation. Based on this, we utilize a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship, and to derive policy recommendations for recovery. We illustrate that while entrepreneurship recovery will benefit from measures such as direct subsidies for start-ups, firms’ revenue losses, and loan liabilities, it will also benefit from aggregate demand-side support and income redistribution measures, as well as from measures that facilitate the innovation-response to the Keynesian supply-shock caused by the pandemic, such as access to online retail and well-functioning global transportation and logistics.
- Subjects :
- Entrepreneurship
Original Paper
Public economics
Partial equilibrium
05 social sciences
COVID-19
Subsidy
Extreme events
Development
Loan
Natural hazard
0502 economics and business
Environmental sociology
Economics
Revenue
050207 economics
Redistribution of income and wealth
Innovation
050203 business & management
Subjects
Details
- ISSN :
- 15565068
- Database :
- OpenAIRE
- Journal :
- SSRN Electronic Journal
- Accession number :
- edsair.doi.dedup.....4f2ff089871d1f41d75e02587199bd13