Implicit Impacts of Small Business Activity
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Small businesses are revered in the United States and regularly championed as the engine of American economic growth. Yet the actual benefits of small businesses and small business activity are often poorly understood. In analyzing various justifications for the importance of small businesses it is clear that, though important research in micro and macroeconomics is being done, each falls short of a complete understanding of small business activity. In particular, current macroeconomic research is failing to account for important welfare considerations in small business activity. Microeconomics on the other hand, while dealing with these considerations theoretically, has yet to provide empirical evidence of these claims. This paper develops a method to demonstrate these welfare considerations in an empirical way using hedonic regression modeling to form a more comprehensive understanding of the impacts of small business activity.