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Which State Policies Lead to U.S. Firm Exits? Analysis with the Economic Freedom Index

29 Pages Posted: 29 Oct 2011  

Noel D. Campbell

University of Central Arkansas

Kirk C. Heriot

Columbus State University

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business

David T. Mitchell

University of Central Arkansas

Multiple version iconThere are 2 versions of this paper

Date Written: October 28, 2011

Abstract

This research investigates the relationship between public policy and firm deaths in the U.S. States. Policies that promote firm births may increase or decrease firm deaths. We use components of the Economic Freedom of North America index (EFNA) as a metric to evaluate the relationship between increased government size and firm deaths for the 50 states during 1989-2004. Elements of the EFNA are significantly related to firm deaths, but in conflicting directions. We find that over the relevant range, some changes in state policy lead to firm death more than others. The paper also discusses our results and the implications for both future academic research and public policy.

Suggested Citation

Campbell, Noel D. and Heriot, Kirk C. and Jauregui, Andres and Mitchell, David T., Which State Policies Lead to U.S. Firm Exits? Analysis with the Economic Freedom Index (October 28, 2011). Available at SSRN: https://ssrn.com/abstract=1950834 or http://dx.doi.org/10.2139/ssrn.1950834

Noel D. Campbell

University of Central Arkansas ( email )

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

Kirk C. Heriot (Contact Author)

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

David T. Mitchell

University of Central Arkansas ( email )

201 Donagehy Ave.
Conway, AR 72035-0001
United States

HOME PAGE: http://uca.edu/efirm/facultystaff/dmitchell/

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