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Economic policy uncertainty and small business expansion

Author

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  • Schweitzer, Mark E.
  • Shane, Scott

Abstract

Is uncertainty causing small business owners to behave in ways that are hindering the recovery? That question is at the center of an intense public debate. Though reasonable arguments have been presented on both sides, there is not much empirical evidence to draw on. To contribute some to the discussion, we investigated the statistical association between data on small business plans to hire and make capital expenditures and a measure of policy uncertainty. Our analysis suggests that uncertainty is adversely affecting small business owners’ expansion plans.

Suggested Citation

  • Schweitzer, Mark E. & Shane, Scott, 2011. "Economic policy uncertainty and small business expansion," Economic Commentary, Federal Reserve Bank of Cleveland, issue Nov.
  • Handle: RePEc:fip:fedcec:y:2011:i:nov29:n:2011-24
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    Cited by:

    1. Sin, Chor-yiu (CY), 2015. "The economic fundamental and economic policy uncertainty of Mainland China and their impacts on Taiwan and Hong Kong," International Review of Economics & Finance, Elsevier, vol. 40(C), pages 298-311.

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