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Federal Reserve Bank of Cleveland
Economic Commentary
Economic policy uncertainty and small business expansion
Mark E. Schweitzer
Scott Shane

Is uncertainty causing small business owners to behave in ways that are hindering the recovery? That question is at the center of an intense public debate. Though reasonable arguments have been presented on both sides, there is not much empirical evidence to draw on. To contribute some to the discussion, we investigated the statistical association between data on small business plans to hire and make capital expenditures and a measure of policy uncertainty. Our analysis suggests that uncertainty is adversely affecting small business owners’ expansion plans.

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Mark E. Schweitzer & Scott Shane, "Economic policy uncertainty and small business expansion" , Federal Reserve Bank of Cleveland, Economic Commentary, issue Nov, 2011.
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Keywords: Small business; Economic conditions - United States
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