The goal of this project is to empirically analyse if taxes serve as a barrier to entrepreneurship, and if tax cuts can promote the birth of new firms and influence their survival. To answer these questions, the project will empirically investigate the relationship between financial returns to entrepreneurship and entrepreneural entry and exit decisions at the individual level. The theoretical framework that will be used to model entrepreneurial choice in this project will also account for different degrees of uncertainty in self-employment and in dependent employment.
Fossen, F.M. und Steiner, V. (2008), Income Taxes and Entrepreneurial Choice: Empirical Evidence from Two German Natural Experiments. Forthcoming in: Empirical Economics. Previous version:
DIW Discussion Paper No. 582 (2006).
Fossen, F.M. (2007), Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany,
DIW Discussion Paper No. 705.
Caliendo, M., Fossen, F.M., Kritikos, A.S. (2008), Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey. Forthcoming in: Small Business Economics. Previous version:
DIW Discussion Paper No. 600 (2006).
Fossen, F.M. (2008), Would a Flat Tax Stimulate Entrepreneurship in Germany? A Behavioural Microsimulation Analysis Allowing for Risk,
DIW Discussion Paper No. 773.