Piotr Danisewicz, Steven Ongena, 07 November 2020

Entrepreneurship is a key driver of economic activity, so entrepreneurial activity is one of the central points of focus for policymakers and academics. Using information on fiscal transfers in Poland, this column documents beneficial effects of local government funding as a mechanism to alleviate entrepreneurial constraints and spur firm formation. In addition, the observed impact of transfers is stronger in regions with higher political competition and accountability, and in regions with more positive historical attitudes toward entrepreneurial activity. 

CEPR Policy Research