We develop a simple theoretical model that analyzes the interaction between progressive taxation, effort and wealth creation. We show how progressive taxation, while not affecting the behavior of entrepreneurs with less profitable profit opportunities, leads entrepreneurs benefiting from good or...

Using macro-level panel data, we examine the effects of taxation and tax progressivity on entrepreneurship in a large group of European countries. We address two main objectives. First, we try to explore whether tax increases discourage entrepreneurial activity, focusing on new self-employment...

To improve on the argument presented by classical economists, many authors have tried to rely as much as possible on a value-free approach. In this paper, reasons to reject the propositions made by neoclassical economists are briefly recalled. We then turn toward Kirzner’s proposition which is...