Entrepreneurial finance, credit cards, and race

A-Tier
Journal: Journal of Financial Economics
Year: 2012
Volume: 106
Issue: 1
Pages: 182-195

Authors (2)

Chatterji, Aaron K. (not in RePEc) Seamans, Robert C. (New York University (NYU))

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:jfinec:v:106:y:2012:i:1:p:182-195
Journal Field
Finance
Author Count
2
Added to Database
2026-01-29