Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227362 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13835
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 propose a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship and derive policy recommendations for recovery. Our model's comparative statics shows that entrepreneurship recovery will benefit from aggregate demand-side support measures, combined with direct subsidies for start-ups, firms' revenue losses, and loan liabilities, as well as from actions that promote income redistribution.
Subjects: 
entrepreneurship
innovation
COVID-19
extreme events
development
JEL: 
I18
L26
L53
M13
Document Type: 
Working Paper

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