Department of Economics
University of Delaware
Working Paper #2007-11

Deregulation for Development:  A Tale of Two States

Burton A. Abrams and James L. Butkiewicz

ABSTRACT

Economic stress led South Dakota and Delaware in the early 1980’s to eliminate their usury laws and enact other enabling legislation in an effort to attract a new industry and new jobs to their states.  Sufficient time has now elapsed to assess the success of the policies adopted by these two states.  Evidence suggests that both states benefited from their deregulatory actions but in different ways.   These successful deregulations provide an important lesson for state-level authorities responsible for determining the regulatory environment.

JEL Codes:  R110; H730; O200

Key Words:  Regional Development; Deregulation; State Government Public Policy