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Public Policy Toward Entrepreneurship

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Abstract

There is widespread support for tax policies providing special treatment for small businesses. This paper reviews standard efficiency and equity criteria for such tax-subsidies, and finds they provide little support for such policies. The review highlights a central empirical void requiring further research: the "optimal" business failure rate. Entrepreneurs do struggle, and small businesses frequently merge and nearly as frequently fail. But we do not know enough to determine which firms to target for success or failure.

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Authors and Affiliations

  1. Center for Policy Research, Syracuse University, Maxwell School of Citizenship and Pacific Affairs, 426 Eggers Hall, Syracuse, NY, 13244-1020, U.S.A.

    Douglas Holtz-Eakin

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  1. Douglas Holtz-Eakin
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Holtz-Eakin, D. Public Policy Toward Entrepreneurship. Small Business Economics 15, 283–291 (2000). https://doi.org/10.1023/A:1011153921409

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  • DOI: https://doi.org/10.1023/A:1011153921409

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