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Politics and entrepreneurship in the US

Author

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  • Louis‐Philippe Beland
  • Bulent Unel
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 entrepreneurial activity by exploiting random variation in close gubernatorial elections in 50 states over the last three decades in a regression discontinuity design. We find that Republican governors are no different than Democratic governors in their effects on entrepreneurship. Our findings are robust to several sensitivity checks. Politique et entrepreneuriat aux États‐Unis. Il y a une croyance ferme que les Républicains sont davantage pro‐monde‐des‐affaires que les Démocrates. Dans ce texte, nous analysons l’impact causal de l’allégeance partisane des gouverneurs (Républicaine ou Démocrate) sur l’activité entrepreneuriale en utilisant les variations aléatoires dans les élections chaudement disputées au poste de gouverneur dans 50 états sur une période de trois décennies à l’aide de la technique de régression sur discontinuité. On montre que les gouverneurs Républicains ne sont pas différents des gouverneurs Démocrates pour ce qui est des effets sur l’entrepreneuriat. Ces résultats sont robustes lorsque soumis à divers tests de sensibilité.

Suggested Citation

  • Louis‐Philippe Beland & Bulent Unel, 2019. "Politics and entrepreneurship in the US," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 33-57, February.
    • Handle: RePEc:wly:canjec:v:52:y:2019:i:1:p:33-57
    DOI: 10.1111/caje.12365
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    Cited by:

    1. Niklas Potrafke, 2018. "Government ideology and economic policy-making in the United States—a survey," Public Choice, Springer, vol. 174(1), pages 145-207, January.
    2. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    3. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    4. Patel, Pankaj C., 2023. "Automation vulnerability, voting, and self-employment," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    5. Louis-Philippe Beland & Oluwatobi Fakorede & Derek Mikola, 2020. "Short-Term Effect of COVID-19 on Self-Employed Workers in Canada," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 66-81, July.
    6. Keita, Sekou & Mandon, Pierre, 2018. "Give a fish or teach fishing? Partisan affiliation of U.S. governors and the poverty status of immigrants," European Journal of Political Economy, Elsevier, vol. 55(C), pages 65-96.
    7. Areendam Chanda & Bulent Unel, 2021. "Do attitudes toward risk taking affect entrepreneurship? Evidence from second-generation Americans," Journal of Economic Growth, Springer, vol. 26(4), pages 385-413, December.
    8. Lucas, David S., 2024. "The effect of regime change on entrepreneurship: A real options approach with evidence from US gubernatorial elections," Journal of Business Venturing, Elsevier, vol. 39(4).
    9. Ortega, Alberto, 2020. "State partisanship and higher education," Economics of Education Review, Elsevier, vol. 76(C).
    10. Louis-Philippe Beland, 2016. "Political Parties and Economic Outcomes. A Review," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(01), pages 47-54, May.
    11. Béland, Louis-Philippe & Brodeur, Abel & Wright, Taylor, 2020. "The Short-Term Economic Consequences of COVID-19: Exposure to Disease, Remote Work and Government Response," GLO Discussion Paper Series 524, Global Labor Organization (GLO).
    12. Unel, Bulent & Upton, Gregory B., 2023. "Oil & gas induced economic fluctuations and self-employment," Labour Economics, Elsevier, vol. 82(C).
    13. Niklas Potrafke, 2017. "Government Ideology and Economic Policy-Making in the United States," CESifo Working Paper Series 6444, CESifo.
    14. Cohle, Zachary & Ortega, Alberto, 2022. "Life of the party: The polarizing effect of foreign direct investment," European Journal of Political Economy, Elsevier, vol. 72(C).

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    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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