O'Reilly logo

Handbook of Economic Growth by Steven Durlauf, Philippe Aghion

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 1

Culture, Entrepreneurship, and Growth

Matthias Doepke* and Fabrizio Zilibotti,    *Department of Economics, Northwestern University and NBER, 2001 Sheridan Road, Evanston, IL 60208, USA,    Department of Economics, University of Zurich, Muehlebachstrasse 86, Zurich, CH 8008, Switzerland,    doepke@northwestern.edu, fabrizio.zilibotti@econ.uzh.ch

Abstract

We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile. As a consequence, the occupational choice of entrepreneurship hinges on risk tolerance ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required