Public policy, entrepreneurship, and venture capital in the United States

Douglas Cumming and Dan Li

Journal of Corporate Finance, 2013, vol. 23, issue C, 345-367

Abstract: 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: Venture capital; Entrepreneurship; Public policy; Tax; Labor law; Bankruptcy (search for similar items in EconPapers)
JEL-codes: G24 G32 G33 G38 K22 K31 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:23:y:2013:i:c:p:345-367

DOI: 10.1016/j.jcorpfin.2013.09.005

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