Essay

Investigating the Link Between Internet Access and Entrepreneurship

An economist observes a consistent statistical pattern: geographic regions with higher rates of broadband internet penetration also exhibit higher rates of new small business formation. While this correlation is strong and has been observed repeatedly, simply concluding that 'internet access causes entrepreneurship' is premature. Describe the methodological steps an economist should take to move beyond this correlation and investigate the potential causal mechanisms that might explain this repeated finding. In your answer, explain why each step is crucial for establishing a more robust understanding of the relationship.

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Updated 2025-08-02

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CORE Econ

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Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

Analysis in Bloom's Taxonomy

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