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Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

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Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF ACCOUNTING AND FINANCE

Business Formation in the Wake of States’ Responses to Kelo

Author(s): Ramon P. DeGennaro, Tianning Li

Citation: Ramon P. DeGennaro, Tianning Li, (2013) "Business Formation in the Wake of States’ Responses to Kelo," Journal of Accounting and Finance, Vol. 13, Iss. 5, pp. 125 - 140

Article Type: Research paper

Publisher: North American Business Press

Abstract:

The U.S. Supreme Court ruling in Kelo v. New London (2005) allows governments to take private

property for transfer to new private owners to promote “economic development”. Our theoretical model

shows that business creation can be encouraged, unaffected, or discouraged as the probability of takings

increases, depending on the level of compensation and the owners' public use benefits. Empirical results

indicate that states can pass laws protecting property rights without fear of retarding business formation,

so long as compensation is economically fair. We explain why Kelo and these laws do not measurably

affect business formation in our empirical work.