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Measuring the Impact of Regulations on Small Firms

  • David Dole
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    Small firms are an important part of any economy, since they generate a large proportion of an economy's new jobs. Despite their apparent vitality, though, small firms are particularly vulnerable to the adverse effects of government regulation. Analyzing the impact of regulation on small firms is especially important for federal agencies in the U.S., since federal law requires agencies to conduct such studies. This study sets forth a simple economic theory of regulatory impact, and presents some tools that a regulatory body can use to evaluate the potential impact of a new regulation on small firms.

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    File URL: http://yosemite.epa.gov/ee/epa/eed.nsf/WPNumber/2001-03/$File/2001-03.PDF
    File Function: First version, 2001
    Download Restriction: no

    Paper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200103.

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    Length: 48 pages
    Date of creation: Nov 2001
    Date of revision: Nov 2001
    Handle: RePEc:nev:wpaper:wp200103
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    Phone: 202-566-2244
    Web page: http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/homepage

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    1. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    2. Robert E. Kohn, 1988. "Efficient Scale of the Pollution-Abating Firm," Land Economics, University of Wisconsin Press, vol. 64(1), pages 53-61.
    3. Pashigian, B Peter, 1984. "The Effect of Environmental Regulation on Optimal Plant Size and Factor Shares," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 1-28, April.
    4. Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
    5. Dean, Thomas J. & Brown, Robert L. & Stango, Victor, 2000. "Environmental Regulation as a Barrier to the Formation of Small Manufacturing Establishments: A Longitudinal Examination," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 56-75, July.
    6. Cornell, N. & Noll, Roger G. & Weingast, B., . "Safety Regulation," Working Papers 122, California Institute of Technology, Division of the Humanities and Social Sciences.
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