“The basic hypothesis is that, while the total supply of entrepreneurs varies among societies, the productive contribution of the society's entrepreneurial activities varies much more because of their allocation between productive activities such as innovation and largely unproductive activities such as rent seeking or organized crime. This allocation is heavily influenced by the relative payoffs society offers to such activities. This implies that policy can influence the allocation of entrepreneurship more effectively than it can influence its supply. Historical evidence from ancient Rome, early China, and the Middle Ages and Renaissance in Europe is used to investigate the hypotheses.”

—  William J. Baumol

Source: "Entrepreneurship: Productive, unproductive, and destructive," 1996, p. 3

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "The basic hypothesis is that, while the total supply of entrepreneurs varies among societies, the productive contributi…" by William J. Baumol?
William J. Baumol photo
William J. Baumol 9
American economist 1922–2017

Related quotes

David Easton photo

“Political science is the study of the authoritative allocation of values for a society.”

David Easton (1917–2014) Canadian academic

The Political System: An Inquiry into the State of Political Science (1953)

“Social differentiation is a universal characteristic of human societies. Early human societies survived and became dominant among animal species because of their superior social organization — that is, their more elaborate division of labor and consequent close coordination of activities.”

Walter F. Buckley (1922–2006) American sociologist

Source: Class and society (1959), p. 4.

Karl Marx photo

“Technology discloses the active relation of man towards nature, as well as the direct process of production of his very life, and thereby the process of production of his basic societal relations, of his own mentality, and his images of society, too.”

Karl Marx (1818–1883) German philosopher, economist, sociologist, journalist and revolutionary socialist

Vol. I, Ch. 13: "Machinery and Big Industry".
(Buch I) (1867)

“The basic proposition is that the greater the uncertainty of the task, the greater the amount of information that has to be processed between decision-makers during the execution of the task. If the task is well understood prior to performing it much of the activity can be preplanned. If it is n~t understood, then during the actual task execution more knowledge is acquired which leads to changes in resource allocations, schedules, and priorities.”

Jay R. Galbraith (1939–2014) American business theorist

Source: Organization design: An information processing view, 1977, p. 21

Richard Stallman photo

“We have already greatly reduced the amount of work that the whole society must do for its actual productivity, but only a little of this has translated itself into leisure for workers because much nonproductive activity is required to accompany productive activity. The main causes of this are bureaucracy and isometric struggles against competition. Free software will greatly reduce these drains in the area of software production. We must do this, in order for technical gains in productivity to translate into less work for us.”

Richard Stallman (1953) American software freedom activist, short story writer and computer programmer, founder of the GNU project

1980s, GNU Manifesto (1985)

Theodore Schultz photo

“There are comparatively few significant inefficiencies in the allocation of the factors of production in traditional agriculture.”

Theodore Schultz (1902–1998) American economist

Source: "Transforming traditional agriculture," 1964, p. 37

Carl von Clausewitz photo

“The more physical the activity, the less the difficulties will be. The more the activity becomes intellectual and turns into motives which exercise a determining influence on the commander's will, the more the difficulties will increase.”

Carl von Clausewitz book On War

On War (1832), Book 2

Milton Friedman photo

“The basic problem of social organization is how to co-ordinate the economic activities of large numbers of people.”

Milton Friedman (1912–2006) American economist, statistician, and writer

Source: (1962), Ch. 1 The Relation Between Economic Freedom and Political Freedom, p. 12

Warren Buffett photo

“I happen to have a talent for allocating capital. But my ability to use that talent is completely dependent on the society I was born into.”

Warren Buffett (1930) American business magnate, investor, and philanthropist

To Barack Obama, as quoted in The Audacity of Hope: Thoughts on Reclaiming the American Dream (2006), Ch. 5
Context: I happen to have a talent for allocating capital. But my ability to use that talent is completely dependent on the society I was born into. If I’d been born into a tribe of hunters, this talent of mine would be pretty worthless. I can’t run very fast. I’m not particularly strong. I’d probably end up as some wild animal’s dinner.
But I was lucky enough to be born in a time and place where society values my talent, and gave me a good education to develop that talent, and set up the laws and the financial system to let me do what I love doing — and make a lot of money doing it. The least I can do is help pay for all that.

N. Gregory Mankiw photo

“Economics is the study of how society manages its scarce resources. In most societies, resources are allocated not by an all-powerful dictator but through the combined actions of millions of households and firms.”

N. Gregory Mankiw (1958) American economist

Source: Principles of Economics (1998-), Ch. 1. Ten Principles of Economics; p. 4

Related topics