Entrepreneurial finance, credit cards, and race

Aaron K. Chatterji, Robert Seamans

    Research output: Contribution to journalArticle

    Abstract

    This paper examines the impact of financial deregulation on entrepreneurship. We assess the impact of credit card deregulation on transitions into self-employment using state-level removal of credit card interest rate ceilings following the US Supreme Court's 1978 Marquette decision as a quasi-natural experiment. We find that credit card deregulation increases the probability of entrepreneurial entry, with a particularly strong effect for black entrepreneurs. We demonstrate that these effects are magnified in states with a history of racial discrimination and link the results to discrimination-based barriers to entry.

    Original languageEnglish (US)
    Pages (from-to)182-195
    Number of pages14
    JournalJournal of Financial Economics
    Volume106
    Issue number1
    DOIs
    StatePublished - Oct 1 2012

    Fingerprint

    Entrepreneurial finance
    Credit cards
    Deregulation
    Financial deregulation
    Racial discrimination
    Natural experiment
    Entrepreneurs
    Discrimination
    Supreme Court
    Entrepreneurship
    Barriers to entry
    Self-employment
    Interest rates

    Keywords

    • Barriers to entry
    • Entrepreneurship
    • Financial constraints
    • Race

    ASJC Scopus subject areas

    • Accounting
    • Finance
    • Economics and Econometrics
    • Strategy and Management

    Cite this

    Entrepreneurial finance, credit cards, and race. / Chatterji, Aaron K.; Seamans, Robert.

    In: Journal of Financial Economics, Vol. 106, No. 1, 01.10.2012, p. 182-195.

    Research output: Contribution to journalArticle

    Chatterji, Aaron K. ; Seamans, Robert. / Entrepreneurial finance, credit cards, and race. In: Journal of Financial Economics. 2012 ; Vol. 106, No. 1. pp. 182-195.
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