Tianning Li1, Ramon P. DeGennaro2

(1. Hood College, Frederick, MD 21701, USA;

2. University of Tennessee, 423 Stokely Management Center, Knoxville, TN 37996, USA)

 

 

Abstract: Do states with stronger property rights protection attract more entrepreneurial activities? States’ different responses to the U.S. Supreme Court’s decision in Kelo v. City of New London to limit local governments to take private property via eminent domain provides a natural experiment to answer this question. We examine whether the different states’ responses to Kelo have impact on states’ shares of national entrepreneurial activities. Our preliminary result shows that states with stronger property rights protection do not necessarily have comparative advantages in attracting entrepreneurial activities over other states. We suggests reasons why this

may be so.

 

 

Key words: Kelo; eminent domain; property rights; entrepreneurship

 

JEL codes: M13, D23, K20, K30, H41, H49