Baugh Center's Daniel Bennett Paper Now Available Online | Local Institutional Heterogeneity and Firm Dynamism: Decomposing the Effects of Economic Freedom on Firm Entry & Firm Exit
ABSTRACT: A nascent body of research suggests that economic freedom is positively associated with entrepreneurial activity. Most of this literature is based on cross-countries analyses, although there is significant regional heterogeneity in entrepreneurial activity and the institutional and policy context within countries. The literature also largely overlooks the potential for the entrepreneurial-inducing effects of economic freedom to drive less efficient firms out of the market. Additionally, economic freedom is a multi-dimensional construct comprised of numerous underlying aspects of the institutional and policy environment, but most studies have employed a composite economic freedom measure to assess its impact on entrepreneurial activity. I contribute to these shortcomings in the literature by decomposing the recently developed Metropolitan Economic Freedom Index into its underlying institutional indicators to explore their potential impact on the firm entry and firm exit rates for a sample of nearly 300 U.S. cities over the period 1972-2012.
Baylor University Announces Funding of Two Baylor Academic Challenge Faculty Positions
Baylor has established the W. Grady Rosier Endowed Chair in Free Enterprise, a new faculty position to be housed within the Hankamer School of Business Entrepreneurship & Corporate Innovation Department.
Dr. Peter Klein is Quoted in Local News Segment | Student loan forgiveness plan
"I think they're sort of competing to see who could come up with the most politically attractive proposal," said Klein.
European Journal of Political Economy Gives 50-Day Free Access to Daniel Bennett's Article | Is it the economic policy, stupid? Economic policy, political parties & the gubernatorial incumbent advantage
ABSTRACT: Incumbent politicians have a well-known advantage in seeking re-election. Using the Economic Freedom of North America dataset, we examine how changes in economic policy during an incumbent governor's tenure influence the probability of losing their re-election bid. Put simply, does economic policy matter for the incumbent advantage? The results suggest that a decrease in economic freedom increases the probability of an incumbent loss, regardless of the governor's party. A decomposition analysis indicates that these results are primarily driven by the government spending sub-index. Furthermore, a more granular analysis suggests that: (1) increases in government consumption spending and government employment are associated with a lower probability of re-election among Democratic incumbent governors, but a higher probability among Republicans; (2) increases in transfer payments relative to personal income reduce the likelihood of re-election, regardless of party; and (3) among Republican incumbents, increases of income taxation and of top marginal tax rates are associated with a higher and lower, respectively, probability of losing re-election. Finally, controlling for a variety of demographic, political and socioeconomic factors, we find that high unemployment increases the probability that an incumbent loses re-election, while increasing net population migration reduces it.
Baugh Center's Daniel Bennett Article Published in Minding the Campus
If students experience long-term financial benefits from going to college, despite accruing debt to finance the rapidly growing cost of higher education, this hardly suggests that rising student loan debt is a crisis. There are, however, some caveats.
Steve Bradley publishes paper with Jim Garven, Wilson Law and Jim West | The Impact of Chief Diversity Officers on Diverse Faculty Hiring
As the American college student population has become more diverse, the goal of hiring a more diverse faculty has received increased attention in higher education. A signal of institutional commitment to faculty diversity often includes the hiring of an executive level chief diversity officer (CDO). To examine the effects of a CDO in a broad panel data context, we combine unique data on the initial hiring of a CDO with publicly available faculty and administrator hiring data by race and ethnicity from 2001 to 2016 for four-year or higher U.S. universities categorized as Carnegie R1, R2, or M1 institutions with student populations of 4,000 or more. We are unable to find significant statistical evidence that preexisting growth in diversity for underrepresented racial/ethnic minority groups is affected by the hiring of an executive level diversity officer for new tenure and non-tenure track hires, faculty hired with tenure, or for university administrator hires.
Steve Bradley Comments in Credit Union Journal
A response to the National Credit Union Administration's plan to expand payday alternative loan options for credit unions.
Entrepreneurship Professor Peter Klein is Recognized for Paper
Peter Klein's 2008 paper, "Opportunity Discovery, Entrepreneurial Action, and Economic Organization" has received this year's Strategic Entrepreneurship Journal Best Paper Prize.
Baugh Center's Peter Klein Publishes Chapter with Thomas A. Lambert for the 2017 Research Handbook on Austrian Law and Economics
Peter Klein publishes chapter with Thomas A. Lambert for the 2017 Research Handbook on Austrian Law and Economics | "An Austrian Analysis of Contemporary American Business Law."
Baugh Center's Daniel Bennett has Essay Featured in Causas y Causantes de Desastre Economico en Venezuela: Un Homenaje a Hugo J. Faria
Daniel Bennett has a short essay in Causas y Causantes de Desastre Economico en Venezuela: Un Homenaje a Hugo J. Faria, a book published by the Venezuelan think tank Econintech.
Baylor Business News | Entrepreneurship Professor Receives Outstanding Faculty Award
Peter Klein is one of eleven Outstanding Faculty Award winners for the 2017-2018 academic year.
Baylor Proud | Peter Klein Receives Outstanding Professor award for 2017-2018
Baylor professors of the year represent arts, sciences, theology & education.
Baylor Entrepreneurship PhD Student, Russ Browder Presents Research at the Academy of Management Annual Meeting
The Tools of Trade: Exploring the Connections Between Entrepreneurship and the Maker Movement
Peter Klein Recognized as Outstanding Faculty for 2017-2018
Eleven faculty members have been recognized as Outstanding Faculty in the areas of teaching, scholarship and contributions to the academic community for the 2017-2018 academic year. The awards recognize the best all-around professors based upon teaching capabilities, research achievement, effective committee service, time spent with students and civic and church involvement, including non-tenured track, tenured and tenure-track faculty.
Peter Klein Pens Mises Institute Blog: The (Empirical) Science Isn't Settled
"Because Science!" has become a popular refrain. I'm not just talking about climate studies. Headline writers love to say this. Apparently "Science" recently proved that we should continue to put two spaces after a period, as we did in the old fixed-width typewriting days.* (No word yet on whether it is OK to put pineapple on pizza.) This kind of language is meant to be a conversation-stopper. If a scientific study — i.e., a laboratory experiment or a robust statistical analysis of secondary data — has proven something, it must be accepted as fact.
Daniel Bennett Presents at APEE 2018 Annual Conference
Research Professor, Daniel Bennett presented "Field of Dreams: If Government Builds Infrastructure, Will Entrepreneurs Come?" at the APEE 2018 Annual Conference sponsored by the The Association of Private Enterprise Education in Las Vegas, NV.
Daniel Bennett pens OpEd for PalmBeachPost.com: Memo to employers: do the right thing
Servers work for a low base wage, but they also expect to earn tips. Employers let servers earn tips, and employers pay the base wage.
Peter Klein pens SSRN paper with Nicolai Foss: Entrepreneurial Opportunities: Who Needs Them?
ABSTRACT: Debate in management research on the status of the opportunity construct is now more than a decade old. We argue that the debate has led to little additional insight in entrepreneurship and we develop the case for abandoning the construct altogether. Uncertainty is central to entrepreneurship and innovation yet absent from opportunity-based approaches. We offer instead a “judgment-based view” of entrepreneurship which revolves around the nexus of resource heterogeneity and uncertainty and is operationalized in the "Beliefs-Actions-Results" (BAR) framework.
Q&A with Barbara Demick, author of award-winning book on North Korean defectors
Barbara Demick, Los Angeles Times journalist and author of the 2010 book, "Nothing to Envy: Ordinary Lives in North Korea," spoke at Baylor University's Free Enterprise Forum last week. Her critically acclaimed book examines the lives of six North Korean defectors living in South Korea.
In an interview with the Tribune-Herald, Demick answered questions on North Korean leader Kim Jong Un, the United States' policy stances, the potential significance of the Winter Olympics in Pyeongchang, South Korea, and the defectors she came to know.
Daniel Bennett pens Minding the Campus essay, The College Endowment Tax: A Good Idea, Sort Of...
Starting next January, some 35 very wealthy private colleges and universities will start paying an annual 1.4 percent college endowment tax under the new tax reform law. That's very few of the nation’s institutions of higher learning, and the tax will not apply to assets that directly contribute to an educational purpose.
Peter Klein pens SSRN paper with Nicolai Foss: Stakeholders and Corporate Social Responsibility: An Ownership Perspective
Abstract: We argue that the stakeholder and CSR literatures can benefit from more systematic thinking about ownership. We discuss general notions of ownership in economics and law and the entrepreneurial notion of ownership we have developed in prior work. On this basis, we argue that stakeholder theory needs to deal more systematically with ownership as an economic function that can be exercised with greater or lesser ability, may be complementary to other economic functions, and works better when assigned to homogeneous groups. Some stakeholder groups are likely to lack what we call "ownership competence," even if they have made relationship-specific investments, in part because of diverse interests. We also discuss CSR from the perspective of ownership and support Friedman's original position, but with a twist. The point of Fried-man’s paper is not that firms "should" maximize profits, but that managerial pursuit of "socially responsible" activities in a discretionary way imposes costs on owners. We suggest this problem is exacerbated with entrepreneurial managers who can devise new ways to disguise self-interested actions as CSR initiatives.
Los Angeles Times Correspondent Barbara Demick Will Speak at Free Enterprise Forum
Barbara Demick, New York bureau chief for the Los Angeles Times, will speak at the Free Enterprise Forum at 4 p.m. Thursday, Feb. 8, in Room 250 of Baylor University's Hankamer School of Business, 1621 S. Third St. Demick will talk about her book Nothing to Envy: Ordinary Lives of North Koreans.
Daniel Bennett quoted in Washington Examiner Article: Colleges reckon with new endowment tax and conservative antipathy
But the tax is now in place, and the risk for universities is that fighting it may elicit even more opposition from the GOP, said Daniel Bennett, a professor at Baylor University who has researched higher education.
Baylor Speaker Event Features Local Entrepreneurs
The Hankamer School of Business launched their three-part speaker event "Confessions of an Entrepreneur" Thursday, which will feature local entrepreneurs and is open to the public. The series will offer Baylor students the opportunity to hear local entrepreneurs speak about how he or she became successful.
Richard Vedder, "America's Foremost Expert on the Economics of Higher Education," will Speak at the Baugh Center for Entrepreneurship and Free Enterprise Lecture Series on Jan. 18
Richard Vedder, Ph.D., Distinguished Professor of Economics Emeritus at Ohio University, director of the Center for College Affordability and Productivity, and an adjunct scholar at the American Enterprise Institute, will speak at the Baugh Center’s Free Enterprise Forum on Jan. 18, in Foster Campus for Business and Innovation.
Peter Klein pens SSRN paper with Christos Kolympiris and Sebastian Hoenen -- Learning by Seconding: Evidence from NSF Rotators
Examines knowledge transfer between organizations via short-term rotations of key personnel.
Peter Klein quoted in article: Experts advise consumers to watch service providers after Net Neutrality repeal
Central Texas experts are speaking out about what the repeal of net neutrality rules means for how we use the internet.
Free Enterprise Forum: Founder, CEO speaks on how to serve God in the workspace
The founder and CEO of PacMoore challenged Baylor students with the question, "How can your job be one of the places where you can best serve God?"
Peter Klein Pens Paper with Kirsten Foss and Nicolai Foss - Uncovering the hidden transaction costs of market power: A property rights approach to strategic positioning
Abstract: A central construct in competitive strategy research is market power, the ability to raise price above marginal cost. Positioning research focuses on attempts to build, protect, and exercise market power. However, this approach contains hidden assumptions about transaction costs. Parties made worse off by the exercise of market power can negotiate, bargain, form coalitions, and otherwise contract around the focal firm's attempts to appropriate monopoly profits—depending on transaction costs. We build on property rights economics to explain how transaction costs affect positioning and offer propositions about successful positioning in an environment with transaction costs.
Boris Nikolaev Quoted in Article via OZY.com
Entrepreneurs Aren't As Happy As You Think
Steve Bradley Speaks at Mississippi State University Entrepreneurship Conference
Baugh Center Blog Spotlights Ryan Snitzer of Campus Crates
"There are so many opportunities out there. You'll never know if you can succeed unless you try." ~ Ryan Snitzer
Peter Klein Pens Mises Institute Blog: Should Puerto Rico Default?
Academy of Management Article by Peter Klein and Nicolai Foss: Entrepreneurial Discovery or Creation? In Search of the Middle Ground
New SSRN Paper by Peter Klein, Kirsten Foss and Nicolai J. Foss: Uncovering the Hidden Transaction Costs of Market Power: A Property Rights Approach to Strategic Positioning
Abstract: A central construct in competitive strategy research is market power, the ability to raise price above marginal cost. Positioning research focuses on attempts to build, protect, and exercise market power. However, this approach contains hidden assumptions about transaction costs. Parties made worse off by the exercise of market power can negotiate, bargain, form coalitions, and otherwise contract around the focal firm's attempts to appropriate monopoly profits -- depending on transaction costs. We build on property-rights economics to explain how transaction costs affect positioning and offer propositions about successful positioning in an environment with transaction costs.
Boris Nikolaev Co-writes "Corruption and Destructive Entrepreneurship"
Abstract: The negative effects of corruption at the macro level are well-documented. Corruption reduces economic growth, lowers investment, and erodes trust in government officials, creating an institutional environment that pushes entrepreneurs from productive to destructive activities. Corruption also has effects at the micro level because some industries are better situated to profit from corruption than others. Corruption not only lowers economic output but also shifts resources toward some industries and away from others. Using federal convictions in the USA as a measure of corruption, regression results show that increased corruption shifts resources toward the construction industry and away from the education industry and professional, scientific, and technical service industry. The evidence also shows that the distance from state capitals and voter turnout moderate the relationship between corruption and firm concentrations.
Steve Mariotti to Speak on Campus as Part of the Free Enterprise Forum
Nationally Renowned Expert to Discuss Role of Entrepreneurs in War-Torn Societies
Peter Klein Speaks as Visiting Lecturer at Francisco Marroquin University in Guatemala
Klein addresses UFM "First Tuesday" entrepreneur networking event.
Boris Nikolaev and Daniel Bennett Publish Comercio Exterior Bancomext Article: Instituciones Y Bienestar
Boris Nikolaev and Daniel Bennett Publish Journal of Regional Analysis & Policy Article: Economic Freedom and Emotional Well-Being
Abstract: We explore the relationship between emotional well-being and economic freedom. Using data for a sample of 12 countries from wave 2 of the World Value Survey (WVS) and the Economic Freedom of the World (EFW) index, we find that people living in more economically free societies are more likely to report the presence of positive affect and absence of negative affect. Specifically, people who live in countries with greater economic freedom are more likely to report feeling excited, accomplished, and on the top of the world. At the same time, they are less likely to report feeling pride, restlessness, loneliness, boredom, and being
upset. These results are consistent with previous studies that find a positive association between economic freedom and life satisfaction.
Peter Klein Pens Article for Mises Institute: Why Government Cannot Be Run Like a Business
Klein says, "Government cannot be 'run like a business,' as people sometimes hope, because government and business are intrinsically different."
Steve Bradley Presents Maker Space Research
Baugh Center Launches New Fall Speaker Series
Confessions of an Entrepreneur Lunch Speaker Series premiere event is Thursday, September 7.
Baugh Center and Ratio Institute Co-Host Young Scholars Colloquium
Baylor's Baugh Center for Free Enterprise and Ratio Institute in Stockholm, Sweden co-hosted a Young Scholars Colloquium with the theme "Institutions and Entrepreneurship."
Peter Klein's Work Used in Nonprofit Quarterly Article: Risk, Uncertainty, and Nonprofit Entrepreneurship
This article is from the Summer 2017 edition of the Nonprofit Quarterly, "Nonprofit Graduation: Evolving from Risk Management to Risk Leadership."
Peter Klein quoted in article via The Atlanta Journal-Constitution
Kempner: Our CEO/President Trump gets graded by profs
Baugh Center Blog Spotlights Kirsten Dickerson of Raven + Lily
“Never lose sight of your mission or reason for wanting to start a business.”
~ Kirsten Dickerson
Steve Bradley and Boris Nikolaev host "Entrepreneurship & Well-Being" Workshop in Sweden
The John F. Baugh Center for Entrepreneurship & Free Enterprise, represented by Steve Bradley and Boris Nikolaev, hosted an "Entrepreneurship & Well-Being" workshop from June 1-4, 2017 in Steninge, Sweden.
Peter Klein discusses "How Not to Reform the Fed" on Mises Weekends with Jeff Deist
Arguments for a "rules based" Fed are gaining momentum on both the political Left and Right — and even among some libertarians. Would the adoption of ideas like NGDP targeting and the "Taylor Rule" really make the Fed less dangerous? Would they be an improvement on the Fed's current discretionary approach? Can monetary "rules" really contain booms and busts, or would Yellen and company simply break them at the first sign of the next crash? Professor Peter Klein joins Jeff for a discussion.
Boris Nikolaev publishes Journal of Economic Behavior & Organization paper with Christopher Boudreax and Rauf Salahodjaev: Are individualistic societies less equal? Evidence from the parasite stress theory of values
It is widely believed that individualistic societies, which emphasize personal freedom, award social status for accomplishment, and favor minimal government intervention, are more prone to higher levels of income inequality compared to more collectivist societies, which value conformity, loyalty, and tradition and favor more interventionist policies. The results in this paper, however, challenge this conventional view. Drawing on a rich literature in biology and evolutionary psychology, we test the provocative Parasite Stress Theory of Values, which suggests a possible link between the historical prevalence of infectious diseases, the cultural dimension of individualism–collectivism and differences in income inequality across countries. Specifically, in a two-stage least squares analysis, we use the historical prevalence of infectious diseases as an instrument for individualistic values, which, in the next stage, predict the level of income inequality, measured by the net GINI coefficient from the Standardized World Income Inequality Database (SWIID). Our findings suggest that societies with more individualistic values have significantly lower net income inequality. The results are robust even after controlling for a number of confounding factors such as economic development, legal origins, religion, human capital, other cultural values, economic institutions, and geographical controls.
Baugh Center Blog Spotlights Cece Lively of Lively Designs.
"Your hard work is a direct reflection on your products." ~ Cece Lively
Baugh Center Blog Spotlights 2017 Baylor Youth Entrepreneur Award Recipients
"If you can dream it, you can do it." ~ Walt Disney
Peter Klein's 2013 "Healthcare and the Free Market" video included in Zero Hedge Article
Thinking about what health care actually is.
Daniel Bennett Publishes Article with World Development - Economic Development: A Post-Colonial Perspective
Existing literature suggests that either colonial settlement conditions or the identity of colonizer were influential in shaping the post-colonial institutional environment, which in turn has impacted long-run economic development. These two potential identification strategies have been treated as substitutes. We argue that the two factors should instead be treated as complementary and develop an alternative and unified IV approach that simultaneously accounts for both settlement conditions and colonizer identity to estimate the potential causal impact of a broad cluster of economic institutions on log real GDP per capita for a sample of former colonies. Using population density in 1500 as a proxy for settlement conditions, we find that the impact of settlement conditions on institutional development is much stronger among former British colonies than colonies of the other major European colonizers. Conditioning on several geographic factors and ethno-linguistic fractionalization, our baseline 2SLS estimates suggest that a standard deviation increase in economic institutions is associated with a three-fourth standard deviation increase in economic development. Our results are robust to a number of additional control variables, country subsample exclusions, and alternative measures of institutions, GDP, and colonizer classifications. We also find evidence that geography exerts both an indirect and direct effect on economic development.
Peter Klein and Catherine Deffains-Crapsky Investigate Angel Networks in Upcoming Book Chapter
In their recent article, "Business Angels, Social Networks, and Radical Innovation," the pair summarizes the state of angel networking in the U.S. and Western Europe.
McLane Scholars Reading Program Accepting Applications for Fall 2017
The Baugh Center for Entrepreneurship & Free Enterprise supports the intellectual development of undergraduate students interested in the intersections of entrepreneurship, economics, and public policy. The Baugh Center is pleased to invite applications to the McLane Teammates Scholar Program for the Fall 2017 semester.
Video: Peter Klein Presents Lecture on Why Entrepreneurship Matters at The University of The Bahamas
Entrepreneurship is increasingly recognized as a key driver of economic growth, technological progress, and an improved quality of life. But what exactly do entrepreneurs do, and why does it matter? Peter Klein surveys and critiques contemporary thinking on the entrepreneur, from the perspective of the "Austrian school" of economics, and draws out implications for business practice, public policy, and education.
Free Enterprise Forum Guest Speakers, Chip McElroy and Matt Miller Speak on the Topic of Microbrewers and the Battle for Distribution Rights
The Free Enterprise Forum welcomed Chip McElroy (founder of Live Oak Brewing) and attorney Matt Miller to stage as they discussed a landmark lawsuit related to distribution rights.
Peter Klein Talks with bizhahrain Group Editor
bizbahrain Group Editor, Reena Abraham talks with Peter Klein in an engrossing interview where Klein explains how entrepreneurs deal with an uncertain future as they organize and coordinate valuable resources.
Baugh Center Blog Spotlights Brett & Emily Mills of Jesus Said Love
"Know your purpose and don’t deviate." ~ Emily Mills
Peter Klein participates in Liberty Matters online Discussion
In this Liberty Matters online discussion Peter Boettke of George Mason University examines Israel Kirzner's insights into the rivalrous nature of competitive behavior and the market process, his analysis of market theory and the operation of the price system, the institutional environment that enables a market economy to realize mutual gains from trade and to continuously discover gains from innovation, and to produce a system characterized by economic growth and wealth creation. Boettke concludes by arguing that Kirzner has done more than nearly any other living modern economist to improve our understanding of competitive behavior and the operation of the price system in a market economy. Boettke is joined in the discussion by Peter G. Klein, professor of entrepreneurship at Baylor University's Hankamer School of Business, Mario Rizzo, professor of economics at New York University, and Frédéric Sautet, associate professor at The Catholic University of America. Boettke and Sautet are the editors of Liberty Fund’s 10 volume The Collected Works of Israel M. Kirzner.
Baylor Baugh Center for Entrepreneurship & Free Enterprise Sponsors Workshop in Sweden
Steve Bradley and Boris Nikolaev will represent the Baylor Baugh Center at the Institutions & Well-Being Workshop in Steninge, Sweden.
Peter Klein Article Published with Inside Higher Ed: Incubation's Unintended Consequences
Baugh Center Blog Spotlights the Student Entrepreneurs of Sugar Lips
"I've learned that everyone is capable of more than they think." ~ Kaitleigh Booth
Free Enterprise Forum Guest Speaker, Morris Kleiner, Speaks on the Topic of Occupational Licensing
Baugh Center Blog Spotlights Karen Tyler of Propel Education Strategies
"I believe the only way to be ready for change is to always evaluate products and services and to find ways to innovate in a constantly shifting field." ~ Karen Tyler
Peter Klein Sits Down for Interview While in Shanghai
Peter Klein talks with Tyler Xue at Shanghai's Jifeng Bookstore about Hayek's book The Fortunes of Liberalism, which is forthcoming in Chinese translation, along with the prospects for liberty in China and around the world.
Peter Klein speaks at Shanghai Tech University
Peter Klein travels to Shanghai for speaking engagement and book signing.
Peter Klein cowrites paper with Christos Kolympiris: The Effects of Academic Incubators on University Innovation
Analyzing the impact of academic incubators on the quality of innovations produced by US research-intensive academic institutions.
Peter Klein pens blog for Mises Institute: Entrepreneurship in Cuba
Will entrepreneurship flourish in Cuba, and will it bring the same increases in the quality of life as elsewhere in the world?
Baugh Center Blog Spotlights Rob Curnock of Dub-L Tape
"The desire to better oneself is the most powerful incentive to innovate." ~ Rob Curnock
Peter Klein and Boris Nikolaev represent Baugh Center at Southern Economic Association's Annual Meeting
Baugh Center faculty and associates participated in a Presidential Session at the Southern Economic Association's Annual Meeting last week in Washington, DC.
Magatte Wade Speaks on "Business as the Driver of Social & Economic Justice"
Magatte Wade, founder and CEO of a high-end skin care product line called Tiossan, was on campus November 4 and she shared a thought-provoking and somewhat out-of-the-box message about poverty as she introduced the video Poverty Inc.
Baugh Center Blog Spotlights Tierra Barber & Denitia Blount of Oh My Juice
"We see that there’s a real need for our products,so that drives us to work harder to stay around as long as we can." ~ Tierra Barber
Steve Bradley and Peter Klein co-author Forbes Article: Is America The Land Of The Free
Bradley and Klein share a concern that the decline in US economic freedom is a big stumbling block for entrepreneurs.
Baylor Alum and UT Finance Professor Encourages Students to Consider a Career in Academia
Dr. John Griffin spoke to a group of students and faculty Thursday September 29 about the potential for impact as a university faculty member.
Baugh Center Blog Spotlights Andy Wiltz of Woof's Play & Stay
"If your heart isn’t in your project, the project isn’t going to succeed." ~ Andy Wiltz
Steve Bradley and Peter Klein publish paper with Academy of Management: Institutions, Economic Freedom, and Entrepreneurship: The Contribution of Management Scholarship
Entrepreneurship is regarded as key to economic growth, job creation, and greater prosperity. Indeed, entrepreneurship drives net job growth in the United States, the European Union, and some Asian countries. Yet the United States has experienced a decline in entrepreneurial dynamism since the 1970s, and some European countries continue to struggle to build a culture of entrepreneurship despite significant policy efforts. At the same time many developing countries are experiencing a net rise in entrepreneurial activity, leading many to wonder about a specific aspect of the institutional environment, what the economics and public policy literatures call economic freedom (EF): a summary measure capturing the freedom to engage in economic activity without undue restrictions or subsidies. The papers in this symposium focus on EF, each offering a specific perspective on how scholars can theorize and study the effects of institutions and institutional change on entrepreneurship, and the effects of entrepreneurship on institutions, at and across different levels of analysis.
Boris Nikolaev publishes paper with Daniel L. Bennett: Factor endowments, the rule of law and structural inequality
This paper provides an empirical test of the Engerman–Sokoloff hypothesis that factor endowments influenced the development of the rule of law, which in turn has perpetuated income inequality. Using a measure of the suitability of land for growing wheat relative to sugarcane as an instrument for the rule of law, as measured by area 2 of the Economic Freedom of the World index, we estimate the potential causal impact of the rule of law on the long-run net income inequality. Conditioning on geography, ethnolinguistic fractionalization and legal tradition, the rule of law exerts a negative impact on inequality that is both economically and statistically significant. The results are robust to additional control variables, two alternative measures of the rule of law, an alternative instrumental variable and the exclusion of strategic country samples and outliers.
Boris Nikolaev publishes paper with Daniel L. Bennett: Give me liberty and give me control: Economic freedom, control perceptions and the paradox of choice
We explore the relationship between individual control perceptions and the degree to which a country's institutions and policies are consistent with the principles of economic freedom. Using data from the World Values Surveys (WVS) and the Economic Freedom of the World (EFW) index, we find that people living in more economically free countries are more likely to perceive greater control over their lives. This effect is not diminishing at higher levels of economic freedom. One possible channel that explains this relationship is the perception of procedural fairness and social mobility. Decomposing the EFW index, we further find that the area of sound money is what drives the results.
Boris Nikolaev publishes paper: Does other people's education make us less happy?
A growing body of literature suggests that the extent to which people feel happy with their lives depends, at least partially, on how they compare to those around them. Much of this literature, however, has focused on the relative effect of income on happiness while other factors such as education, marriage, or leisure have received less attention. In this study, I extend this line of inquiry by investigating how individuals' level of education, as well as the average level of education of their reference group, influences their happiness. Using longitudinal data from the Household Income and Labour Dynamics in Australia (HILDA) survey, I find that, even after controlling for an individual's own education, higher reference group education is associated with lower levels of happiness. More educated people, however, are found to be less affected by social comparison. The panel nature of the HILDA dataset, and additional tests, indicate that the negative association between happiness and reference group education is not driven by people's (changing) interpretations of the happiness scale, self-selection, or the income of their reference group. Additional robustness tests show that the results are not sensitive to variations in the definition of a reference group.
Boris Nikolaev publishes paper with Daniel L. Bennett: Economic Freedom & Happiness Inequality: Friends or Foes
This article examines the relationship between economic freedom and happiness inequality for a large sample of countries. We find that economic freedom is negatively associated with happiness inequality and robust to several alternative measures of happiness inequality, including the standard deviation, mean absolute difference, coefficient of variation, and Gini coefficient. Among the economic freedom areas, legal system and sound money are negatively correlated with happiness inequality. Drawing on the Engerman-Sokoloff hypothesis, we use a measure of factor endowments as an instrument for economic freedom to provide a further robustness test, finding a negative association between economic freedom and happiness inequality. (JEL D63, I31, P16)
Baugh Center Blog Spotlights Clay Clark of TrackSculptures.com
"Absolutely the biggest contributor to my success is I realized that I am an entrepreneur at heart." ~ Clay Clark
Peter Klein speaks at Mises University Conference
Dr. Klein speaks on the topic of entrepreneurship at the 30th anniversary of the Mises University Conference.
Peter Klein to be Workshop Panelist at Strategic Management Society Berlin Conference
Knowledge and Innovation, Cooperative Strategy, and Entrepreneurship Paper Development and Future Research Directions Workshop
Blog Center Blog Spotlights Adam Smith of Bike Pipe
"Every day is a new day with new challenges. As an entrepreneur, you’re constantly overcoming those challenges to move your business forward." ~ Adam Smith
Baugh Center for Entrepreneurship & Free Enterprise Now Accepting Applications for the Fall 2016 McLane Scholars Program
The Baugh Center for Entrepreneurship & Free Enterprise supports the intellectual development of undergraduate students interested in the intersections of entrepreneurship, economics, and public policy. The Baugh Center is pleased to invite applications to the McLane Teammates Scholar Program for the Fall 2016 semester.
Peter Klein quoted in article via The Heartland Institute
Peter Klein, Ph.D., professor of entrepreneurship in the Hankamer School of Business and senior fellow in Baylor’s Baugh Center for Entrepreneurship and Free Enterprise, is quoted in this article about New York lawmakers approving a bill that prohibits the advertising of short-term housing rentals in apartment and other spaces.
Baylor Entrepreneurship in Uganda: Building Business from the Ground Up
Dr. Steve Bradley leads team and travels to Kampala, Uganda with seed money to establish partnerships with Ben Kibumba and Come Let's Dance.
Peter Klein publishes paper with Harvey S. James and Desmond Ng: Complexity, novelty, and ethical judgment by entrepreneurs
How do individual characteristics and the business environment affect the ethical judgment of entrepreneurs?
Dr. Boris Nikolaev Joins Baugh Center Research Team
Dr. Nikolaev joined Baylor University as a research professor at the Baugh Center for Entrepreneurship and Free Enterprise from Emory University’s Oxford College.
Blog Center Blog Spotlights Cory Dickman of Waco Escape Rooms
"In my eyes, success can be boiled down to an idea and timing." ~ Cory Dickman
Baylor Grad to Intern at Ewing Marion Kauffman Foundation
Kevin Renois (2016 BBA Social Entrepreneurship, Public Administration) accepted an internship opportunity at Ewing Marion Kauffman Foundation in Kansas City, Missouri.
Peter Klein discusses "The Role of Entrepreneurship in the Economy" on Wake Up Call Podcast
Dr. Peter Klein joins Adam Camac to discuss entrepreneurship, the role of entrepreneurship in the economy, and the economic significance of profits, firms, mergers, and acquisitions.
Peter Klein pens paper: My Contributions to Entrepreneurship Theory
Summarizing contributions to entrepreneurship theory, focusing on the links between contemporary entrepreneurship research, the "Austrian" understanding of markets and prices, and the economic theory of the firm.
Baugh Center Blog Spotlights Gib Reynolds of Urban Produce
"It makes me laugh thinking how a guy who grew up in the suburbs of Dallas now owns a farm…but I love what I do." ~ Gib Reynolds
Matt Wood Awarded Tenure
Baylor’s Hankamer School of Business bestows faculty awards on an annual basis. The winners were announced at the Senior Appreciation Banquet April 20.
Peter Klein Receives Brent Clum Outstanding Research Award
This is recognition is given to a tenured faculty member who displays excellence through published research.
Steve Bradley Interviewed by WalletHub...Ask the Experts
Steve Bradley offers insight into starting a business in a small city, "Cities can build off of their strengths - location, cost, amenities and currently successful companies to attract other businesses."
Bradley, Wood and Bylund Publish Research Paper: The Influence of Tax and Regulatory Policies on Entrepreneurs' Opportunity Evaluation Decisions
The purpose of this paper is to investigate effects of policy initiatives on entrepreneurs’ opportunity evaluation decisions.