Opportunity entrepreneurship and regulation: a state-level analysis

John Dove

Applied Economics Letters, 2020, vol. 27, issue 12, 987-991

Abstract: The paper empirically tests the relationship between opportunity entrepreneurship – i.e. procyclical entrepreneurial activity associated with growth-oriented business startups – across states and the relative effect of federal regulation borne by private-sector industries within each state. With entrepreneurial data from the Kauffman Index and a new and plausibly exogenous index of the relative burden imposed by federal regulations on each state between 1998 and 2015, I find a negative and robust association between federal regulation and opportunity entrepreneurship.

Date: 2020
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DOI: 10.1080/13504851.2019.1654080

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