TY  - RPRT
        AU  - Gries, Thomas
AU  - Naudé, Wim
        TI  - Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures
        PY  - 2020/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13835
        UR  - https://www.iza.org/publications/dp13835
        AB  - 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.
        KW  - extreme events
KW  - COVID-19
KW  - innovation
KW  - entrepreneurship
KW  - development
        ER  -