Do U.S. State Firearms Laws Affect Firearms Manufacturing Location?

Jurgen Brauer, Daniel Montolio and Elisa Trujillo-Baute

No 20, SADO - Working Papers from Small Arms Data Observatory

Abstract: In addition to federal firearms legislation applicable to all firearms manufacturers operating in the United States, each of the 50 U.S. states has its own state, and sometimes additional municipal, firearms laws. Conceivably, the relative strictness or laxity of these laws influences location decisions by firearms manufacturers. We use diverse data sets covering the period 1986 to 2010 to exploit variations in state firearms laws to study the manufacturing location of well over 2,700 federally licensed firearms manufacturers. We find that state laws do matter for location but so do other variables. In a way, our findings are reassuring. The firearm industry is just another industry in that it responds to economic incentives and disincentives, of which relevant state laws are an example: They play but an incremental role at the decision-making margin.

Keywords: United States; federal firearms laws; state firearms laws; firearms manufacturing; location analysis (search for similar items in EconPapers)
JEL-codes: H73 K23 L10 L52 L64 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-04
New Economics Papers: this item is included in nep-geo and nep-law
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Related works:
Journal Article: How do US state firearms laws affect firearms manufacturing location? An empirical investigation, 1986–2010 (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:arm:wpaper:20

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