Entrepreneurial finance, credit cards, and race

Aaron K. Chatterji, Robert C. Seamans

Research output: Contribution to journalArticlepeer-review


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
Issue number1
StatePublished - Oct 2012


  • Barriers to entry
  • Entrepreneurship
  • Financial constraints
  • Race

ASJC Scopus subject areas

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


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