Entrepreneurs, Chance, and the Deterministic Concentration of Wealth

In many economies, wealth is strikingly concentrated. Entrepreneurs–individuals with ownership in for-profit enterprises–comprise a large portion of the wealthiest individuals, and their behavior may help explain patterns in the national distribution of wealth. Entrepreneurs are less diversified and more heavily invested in their own companies than is commonly assumed in economic models. We present an intentionally simplified individual-based model of wealth generation among entrepreneurs to assess the role of chance and determinism in the distribution of wealth. We demonstrate that chance alone, combined with the deterministic effects of compounding returns, can lead to unlimited concentration of wealth, such that the percentage of all wealth owned by a few entrepreneurs eventually approaches 100%. Specifically, concentration of wealth results when the rate of return on investment varies by entrepreneur and by time. This result is robust to inclusion of realities such as differing skill among entrepreneurs. The most likely overall growth rate of the economy decreases as businesses become less diverse, suggesting that high concentrations of wealth may adversely affect a country's economic growth. We show that a tax on large inherited fortunes, applied to a small portion of the most fortunate in the population, can efficiently arrest the concentration of wealth at intermediate levels

Remote Sensing of Environment: Current status of Landsat program, science, and applications

Formal planning and development of what became the first Landsat satellite commenced over 50 years ago in 1967. Now, having collected earth observation data for well over four decades since the 1972 launch of Landsat- 1, the Landsat program is increasingly complex and vibrant. Critical programmatic elements are ensuring the continuity of high quality measurements for scientific and operational investigations, including ground systems, acquisition planning, data archiving and management, and provision of analysis ready data products. Free and open access to archival and new imagery has resulted in a myriad of innovative applications and novel scientific insights. The planning of future compatible satellites in the Landsat series, which maintain continuity while incorporating technological advancements, has resulted in an increased operational use of Landsat data. Governments and international agencies, among others, can now build an expectation of Landsat data into a given operational data stream. International programs and conventions (e.g., deforestation monitoring, climate change mitigation) are empowered by access to systematically collected and calibrated data with expected future continuity further contributing to the existing multi-decadal record. The increased breadth and depth of Landsat science and applications have accelerated following the launch of Landsat-8, with significant improvements in data quality. Herein, we describe the programmatic developments and institutional context for the Landsat program and the unique ability of Landsat to meet the needs of national and international programs. We then present the key trends in Landsat science that underpin many of the recent scientific and application developments and followup with more detailed thematically organized summaries. The historical context offered by archival imagery combined with new imagery allows for the development of time series algorithms that can produce information on trends and dynamics. Landsat-8 has figured prominently in these recent developments, as has the improved understanding and calibration of historical data. Following the communication of the state of Landsat science, an outlook for future launches and envisioned programmatic developments are presented. Increased linkages between satellite programs are also made possible through an expectation of future mission continuity, such as developing a virtual constellation with Sentinel-2. Successful science and applications developments create a positive feedback loop—justifying and encouraging current and future programmatic support for Landsat

Does Foreign Direct Investment Stimulate New Firm Creation? In Search of Spillovers through Industrial and Geographical Linkages

This paper examines the spillover effects of inward foreign direct investment (FDI) on the entrepreneurial activities of new firm creation through both industrial and geographical linkages. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in 2000–2004, this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted ‘U’-shaped curvilinear trend

Impact of Urban Conditions of Firm Performance of Migrant Entrepreneurs: A Comparative Dutch - US Study

Recent studies on ethnic entrepreneurship have pointed at an increasing share of migrants in urban small- and medium-sized entrepreneurial businesses. These migrant activities are crucial to the urban economy in many countries, as they employ a significant part of the workforce. The main objective of our study is to identify success conditions of ethnic entrepreneurship by using concepts from social capital and human capital from the literature on empirical factors that are responsible for successful ethnic entrepreneurship. The empirical part of the paper is based on a survey questionnaire among migrant entrepreneurs in the city of Amsterdam in the Netherlands and in Fairfax, County in the state of Virginia in the US. We present an overview of cultural, ethno-psychological and motivational aspects that contribute to the understanding of similarities and differences between ethnic entrepreneurs in both locations. The analysis is structured around several dimensions of social and human capital including personal and business characteristics, and network participation for improving business performance. The findings of the two studies are compared to explore a possible correspondence in business performance patterns. The research tool used to assess performance is Data Envelopment Analysis (DEA), a technique for comparative efficiency analysis in various types of corporate organizations. Finally, concluding remarks are presented and possible extensions of the analysis are suggested. © Springer-Verlag 2009