Taxation and the Quality of Entrepreneurship

We study the effect of taxation on entrepreneurship, taking into account both the amount of entry and the quality of new ventures. We show that even with risk neutral agents and no tax evasion progressive taxes can increase entrepreneurial entry, while reducing average firm quality. So called "success taxes" increase startup of lower value business ideas by reducing the option value of pursuing better projects. This suggests that the most common measure used in the literature, the likelihood of entry into self-employment, may underestimate the adverse effect of taxation.Taxation; Entrepreneurial Entry; Quality of Entrepreneurial Firms

Colonial Heritage and Economic Development

While the importance of institutions for explaining cross-country income differences is widely recognized, comparatively little is known about the origins of economic institutions. One strand of the literature emphasizes cultural differences while another points at exogenous environmental factors such as mortality and climate. Both are supported by some empirical evidence. I reconcile the two schools of institutional origins by proposing a theory of self-selection of colonists to different geographic destinations. Exogenous characteristics such as climate, mortality and factor differences determine which type of settler decides to move to a particular colony. Settler type, in turn, shapes the institutional quality of the new country. The model is used to confirm observed regularities reported by previous researchers. Furthermore, robust new evidence is presented in support of this selection process. The results suggest that any theory of colonial development that does not take selection into account will be incomplete.Economic Development; Culture; Origins of Political Institutions

Where does this image take you? A visual tale from a workshop on geographical imaginations

This work is authored by a group of Ph.D. students and academics who attended a workshop on visual methodologies in the framework of the Scuola di alta formazione in geografia organised by AGeI (Association of Italian Geographers), 2022 edition. By visually reporting the workshop activities we aim at reflecting on the creative power of images in expanding geographical imaginations and its potential in the teaching of geography. The paper is shaped as a visual essay in which images and text do not refer directly to each other but rather aim at creating an imaginative reading flow