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Entrepreneurship and the Deregulation of Banking: How Strong is the Evidence?
The paper demonstrates that recent results suggesting a positive relationship between banking regulation and entrepreneurship are very sensitive to estimation assumption. When heteroscedasticity and autocorrelation are corrected for, branching deregulation is shown to have no effect and the estimated effect of interstate banking deregulation is reduced by nearly two thirds.
Link
http://research.stlouisfed.org/wp/2002/2002-032.pdf