Economic experiments on growth policy

Lynne Kiesling

Tim Kane at the Kauffman Foundation is going to do some experimental economics research (with Dan Houser at George Mason) on some questions of growth and entrepreneurship:

The experiments are for the study of work and entrepreneurial behavior under different policy regimes, including taxation, welfare, and social insurance. I’ll share a link to the preliminary literature review / experimental design working paper in a future post. Questions on my mind are:

1. Will higher federal taxes reduce entrepreneurship and growth, or are those fears overblown?
2. What’s the best way to design an experiment for work under different policy regimes? Once we nail that down, what is the best way to design the choice of riskless versus risky (entrepreneurial) work?
3. Is there research already in existence informing this topic?

Tim’s post summarizes some of that literature and provides some insights into why he thinks an experimental approach will expand our understanding of these questions. I look forward to seeing this research.