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State Regulatory Spending: Boon or Brake for New Enterprise Creation and Income?

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Author Info

  • Noel D. Campbell

    ()
    (University of Central Arkansas, Conway, AR, USA)

  • Kirk C. Heriot

    (Columbus State University, Columbus, GA, USA)

  • Andres Jauregui

    (Columbus State University, Columbus, GA, USA)

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    Abstract

    This article addresses a public policy question: Does state government regulation foster or deter economic development? The authors estimate a system of simultaneous equations for income growth, regulation growth, and growth in the number of new enterprises. It is found that regulation does not provide efficient solutions to conflicts and, therefore, does not foster economic development. It is also found that new enterprise formation does not necessarily indicate income growth and economic development.

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    File URL: http://edq.sagepub.com/content/24/3/243.abstract
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    Bibliographic Info

    Article provided by in its journal Economic Development Quarterly.

    Volume (Year): 24 (2010)
    Issue (Month): 3 (August)
    Pages: 243-250

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    Handle: RePEc:sae:ecdequ:v:24:y:2010:i:3:p:243-250

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    Related research

    Keywords: entrepreneurship; state and local economic development policy; public finance;

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    Cited by:
    1. Peter Calcagno & Russell Sobel, 2014. "Regulatory costs on entrepreneurship and establishment employment size," Small Business Economics, Springer, vol. 42(3), pages 541-559, March.

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