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Explaining Variation in Rates of Entrepreneurship in the United States: 1899-1988

This paper examines rates of entrepreneurship over time in the U.S. economy. It finds strong support for the argument that variations in rates of entrepreneurship follow a Schumpeterian model. Changes in rates of entrepreneurship appear to be driven by changes in technology. Some evidence is also found for the effects of the Protestant Ethic, interest rates, prior rates of entrepreneurship, risk-taking propensity, business failure rates, economic growth, immigration, and age distribution of the population.