This Website has a limited use of cookies. By using this website, you are agreeing to the terms and conditions listed in our data protection policy. Read more

Industrial and Corporate Change

Billionaires

Journal Article
Reference
Sanandaji, Tino and Peter T. Leeson (2013). “Billionaires”. Industrial and Corporate Change 22(1), 313–337. doi.org/10.1093/icc/dts052

Authors
Tino Sanandaji, Peter T. Leeson

Existing studies of entrepreneurship focus on entrepreneurs whose individual contribution to wealth creation is typically trivial: self-employed persons. This article investigates entrepreneurs whose individual contribution to wealth creation is enormous: billionaires. We explore the relationship between economic development, institutions, and these contrasting kinds of entrepreneurs. We find that the institutions consistent with self-employed entrepreneurs differ markedly from the ones consistent with billionaires. Further, only the latter are consistent with the institutions that underlie economic prosperity. Where well-protected private property rights and supporting, market-enhancing institutions flourish, so do billionaires. But self-employed entrepreneurs do not. Where private property rights are weakly protected and interventionist institutions flourish, so do self-employed entrepreneurs. But billionaires do not.