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


  • 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)


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.

Suggested Citation

  • Noel D. Campbell & Kirk C. Heriot & Andres Jauregui, 2010. "State Regulatory Spending: Boon or Brake for New Enterprise Creation and Income?," Economic Development Quarterly, , vol. 24(3), pages 243-250, August.
  • Handle: RePEc:sae:ecdequ:v:24:y:2010:i:3:p:243-250

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    Cited by:

    1. Urbano, David & Aparicio, Sebastian, 2016. "Entrepreneurship capital types and economic growth: International evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 34-44.
    2. 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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