Omer Bayar, Christopher Boudreaux, Todd Richard Yarbrough
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Natural disasters and economic dynamism: Evidence from U.S. entrepreneurial activity
We examine how disaster events influence small business activity in a sample of 48 U.S. states for the period from 1998 to 2018. Our results show that disaster impacts vary by entrepreneurship type; the rate of new entrepreneurs and start-up job creation rise in the aftermath of natural disasters, whereas the opportunity share of new entrepreneurs and start-up survival fall. These findings present a more nuanced understanding of the relationship between natural disasters and entrepreneurial activity than reported in the relevant literature. We interpret our findings in the context of economic dynamism and discuss policy implications.
期刊介绍:
Contemporary Economic Policy publishes scholarly economic research and analysis on issues of vital concern to business, government, and other decision makers. Leading western scholars, including three Nobel laureates, are among CEP"s authors. The objectives are to communicate results of high quality economic analysis to policymakers, focus high quality research and analysis on current policy issues of widespread concern, increase knowledge among economists of features of the economy key to understanding the impact of policy, and to advance methods of policy analysis.