Obamacare and Its Effect on Entrepreneurial Activity in Us States – A Study

I study the effect of Obamacare on entrepreneurial activity in the states of United States (US). I compare entrepreneurial activity in the states that are fully on board in implementing Obamacare with those that refused to play a role in implementing Obamacare, using January 1, 2014 as the treatment date, the day when most provisions of Obamacare came into effect. I do not find evidence that Obamacare had a significant impact on entrepreneurial activity in the states of US. I investigate the matter further by comparing three pairs of bordering / proximate states, as proximity implies similarity in other characteristics for these paired states. I do not find evidence of Obamacare’s positive effect on entrepreneurial activity, when comparing these paired states. However, the above interpretation is subject to certain data limitations like fuzzy discontinuity and average treatment effect