43 Pages Posted: 7 Aug 2009 Last revised: 21 Nov 2014
Date Written: April 23, 2013
This paper empirically examines business starts, deaths, venture capital and patents in relation to U.S. public policy. The most consistent evidence in the data shows that lower levels of labor frictions and higher levels of SBIR awards are associated with more business starts and higher levels of venture capital per population. Counter to expectations, the data indicate a positive impact from the homestead exemption only among the bottom quartile homestead exemption states, and otherwise a negative impact. We analyze a variety of other policy instruments and compare the effects of policy in regular times with the financial crisis of 2008-2010.
Keywords: Entrepreneurial Finance, Venture Capital, Public Policy, Tax, Labor Law, Bankruptcy, SBIR
JEL Classification: G24, G32, G33, G38, K22, K31, K35, L26
Suggested Citation: Suggested Citation
Cumming, Douglas J. and Li, Dan, Public Policy, Entrepreneurship, and Venture Capital in the United States (April 23, 2013). Journal of Corporate Finance, Vol. 23, 2013. Available at SSRN: https://ssrn.com/abstract=1443508 or http://dx.doi.org/10.2139/ssrn.1443508