%0 Report
        %A Gries, Thomas
%A Naudé, Wim
        %T Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures
        %D 2020
        %8 2020 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13835
        %U https://www.iza.org/publications/dp13835
        %X 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.
        %K extreme events
%K COVID-19
%K innovation
%K entrepreneurship
%K development