Politics and Entrepreneurial Activity in the U.S

Louis-Philippe Beland (), Ozkan Eren () and Bulent Unel ()

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: There is a strong belief that Republicans are more pro-business than Democrats. In this paper, we investigate the causal impact of partisan allegiance of governors (Republican or Democratic) on business creation using entrepreneurship data constructed from the Census Population Surveys and establishment creation data from the Business Dynamics Statistics. By exploiting random variation in close gubernatorial elections in 50 states over the last three decades in a Regression Discontinuity design, we find, surprisingly, that Republicans are not different than Democrats in business creation. Our findings are robust to a number of different specifications, samples, and controls.

Date: 2015-04
New Economics Papers: this item is included in nep-ent and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2015-04

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