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Getting the Most Bang for the Buck: An Analysis of States’ Relative Efficiencies in Promoting the Birth of Small Firms

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  • Whitney Peake
  • Maria Marshall

Abstract

Firm birth has recently been an important topic for many state governments. However, ways in which state governments can influence firm births are not obvious, and their efficiency in fostering firm births in comparison with their peers is even less so. Focusing on the birth of small U.S. firms, regression analysis and non-parametric efficiency testing are employed to determine both the expenditures state governments can target to promote firm birth and their relative efficiency in utilizing these expenditures. The relative efficiency tests provide insight as to how states compare with their peers in terms of efficient target expenditure use.

Suggested Citation

  • Whitney Peake & Maria Marshall, 2007. "Getting the Most Bang for the Buck: An Analysis of States’ Relative Efficiencies in Promoting the Birth of Small Firms," The Office of Advocacy Small Business Working Papers 07wpmm, U.S. Small Business Administration, Office of Advocacy.
    • Handle: RePEc:sba:wpaper:07wpmm
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    File URL: http://www.sba.gov/advo/research/rs290tot.pdf
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