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

Economic Development Quarterly, Vol. 24, No. 3, 2010

Posted: 14 Apr 2010 Last revised: 13 May 2010

See all articles by Noel D. Campbell

Noel D. Campbell

University of Central Arkansas

Kirk C. Heriot

Columbus State University

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business

Date Written: April 14, 2010

Abstract

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.

Keywords: entrepreneurship, state and local economic development policy, public finance

JEL Classification: G38

Suggested Citation

Campbell, Noel D. and Heriot, Kirk C. and Jauregui, Andres, State Regulatory Spending: Boon or Brake for New Enterprise Creation and Income? (April 14, 2010). Economic Development Quarterly, Vol. 24, No. 3, 2010, Available at SSRN: https://ssrn.com/abstract=1589733

Noel D. Campbell (Contact Author)

University of Central Arkansas ( email )

Conway, AR 72032
United States
(501)852-7743 (Phone)

Kirk C. Heriot

Columbus State University ( email )

Columbus, GA 31907-5645
United States
7065621674 (Phone)
7065682184 (Fax)

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business ( email )

Columbus, GA 31907-5645
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
373
PlumX Metrics