Public Policy and Venture Capital Backed Innovation

This paper discusses the role of public policy towards the venture capital industry. The model emphasizes four margins: supply of entrepreneurs due to career choice, entry of venture capital funds and search for investment opportunities, entrepreneurial effort and venture capital advice during the start-up period, and introduction of new goods by successful start-ups. The paper considers short- and long-run comparative static and welfare effects of policy reform with regard to capital gains taxation, innovation subsidies, public R&D spending and other policy initiatives.

[1]  Johan Willner,et al.  Privatisation and Public Ownership in Finland , 2003, SSRN Electronic Journal.

[2]  Jerome L. Stein,et al.  Stochastic Optimal Control Modeling of Debt Crises , 2003, SSRN Electronic Journal.

[3]  Christoph Borgmann,et al.  Demographics and Volatile Social Security Wealth: Political Risks of Benefit Rule Changes in Germany , 2003, SSRN Electronic Journal.

[4]  Charles Stuart,et al.  Voting and Nonlinear Taxes in a Stylized Representative Democracy , 2003, SSRN Electronic Journal.

[5]  Concepció Patxot,et al.  On the optimality of PAYG pension systems in an endogenous fertility setting , 2003, Journal of Pension Economics and Finance.

[6]  Thomas Stratmann.  Contribution limits and the effectiveness of campaign spending , 2003 .

[7]  Namkee Ahn,et al.  Bio-Demographic and Health Aspects of Ageing in the EU , 2003, SSRN Electronic Journal.

[8]  L. Bottazzi,et al.  Venture Capital in Europe and the Financing of Innovative Companies , 2002 .

[9]  A. Belke,et al.  Exchange Rate Volatility and Employment Growth: Empirical Evidence from the CEE Economies , 2003, SSRN Electronic Journal.

[10]  Samuel Kortum,et al.  Assessing the Contribution of Venture Capital to Innovation , 2000 .

[11]  Per Strömberg,et al.  Financial Contracting Theory Meets the Real World: An Empirical Analysis of Venture Capital Contracts , 2000 .

[12]  B. Bhattacharyay.  Towards a Macro-Prudential Leading Indicators Framework for Monitoring Financial Vulnerability , 2003, SSRN Electronic Journal.

[13]  Javier Suarez,et al.  Venture Capital Finance: A Security Design Approach , 1999 .

[14]  Annette Alstadsæter,et al.  Income Tax, Consumption Value of Education, and the Choice of Educational Type , 2003 .

[15]  Volker Grossmann,et al.  Contest for Attention in a Quality-Ladder Model of Endogenous Growth , 2003, SSRN Electronic Journal.

[16]  Erik E. Lehmann,et al.  University Spillovers: Strategic Location and New Firm Performance , 2003 .

[17]  Oliver Hart,et al.  Financial Contracting , 2001 .

[18]  Winston T. H. Koh.  Venture Capital Financing , 2004 .

[19]  H. Rosen.  Entrepreneurship and Taxation: Empirical Evidence , 2005 .

[20]  Klaus M. Schmidt,et al.  Convertible Securities and Venture Capital Finance , 2001, SSRN Electronic Journal.

[21]  P. Pestieau,et al.  Wealth Transfer Taxation: A Survey , 2003 .

[22]  M. Artis,et al.  Is There a European Business Cycle? , 2003, SSRN Electronic Journal.

[23]  Jakob von Weizsäcker,et al.  The Hayek Pension an Efficient Minimum Pension to Complement the Welfare State , 2003 .

[24]  Gilberto Turati,et al.  Bailing Out Expectations and Health Expenditure in Italy , 2003, SSRN Electronic Journal.

[25]  C. Hefeker,et al.  Structural Reforms and the Enlargement of Monetary Union , 2000, SSRN Electronic Journal.

[26]  P. O’brien,et al.  The Governance of Globalization: The Political Economy of Anglo-American Hegemony, 1793-2003 , 2003, SSRN Electronic Journal.

[27]  Kashif S. Mansori,et al.  Following in Their Footsteps: Comparing Interest Parity Conditions in Central European Economies to the Euro Countries , 2003, SSRN Electronic Journal.

[28]  R. Gordon.  Can High Personal Tax Rates Encourage Entrepreneurial Activity , 1998 .

[29]  J. Poterba.  CAPITAL GAINS TAX POLICY TOWARD ENTREPRENEURSHIP , 1989, National Tax Journal.

[30]  Michele Moretto,et al.  Investment Size and Firm's Value Under Profit Sharing Regulation , 2003 .

[31]  J. Tremblay,et al.  Public Economics and Startup Entrepreneurs , 2003, SSRN Electronic Journal.

[32]  Douglas J. Cumming,et al.  A Cross-Country Comparison of Full and Partial Venture Capital Exits , 2003 .

[33]  A. Dixit,et al.  Monopolistic competition and optimum product diversity , 1977 .

[34]  D. Snower,et al.  The Firm as a Pool of Factor Complementarities , 2003, SSRN Electronic Journal.

[35]  M. Grimaldi,et al.  Bubbling and Crashing Exchange Rates , 2003, SSRN Electronic Journal.

[36]  Olivier Bargain,et al.  Is the Collective Model of Labor Supply Useful for Tax Policy Analysis ? A Simulation Exercise , 2005 .

[37]  Henning Bohn.  Will Social Security and Medicare Remain Viable as the U.S. Population is Aging? An Update , 2003, SSRN Electronic Journal.

[38]  D. Bergemann,et al.  Venture capital financing, moral hazard, and learning , 1998 .

[39]  Manju Puri,et al.  Venture Capital and the Professionalization of Start-Up Firms: Empirical Evidence , 2000 .

[40]  Marco Runkel,et al.  Optimal Contest Design When the Designer's Payoff Depends on Competitive Balance , 2003, SSRN Electronic Journal.

[41]  Paul A. Gompers,et al.  The venture capital cycle , 1999 .

[42]  J. Suárez.  Business Creation and the Stock Market , 2000 .

[43]  Peter A. Diamond,et al.  Pairwise Credit in Search Equilibrium , 1990 .

[44]  M. Gérard,et al.  Cross-Border Loss Offset and Formulary Apportionment: How Do They Affect Multijurisdictional Firm Investment Spending and Interjurisdictional Tax Competition? , 2003, SSRN Electronic Journal.

[45]  Maureen Were,et al.  An Assessment of the Impact of Hiv/Aids on Economic Growth: The Case of Kenya , 2003, SSRN Electronic Journal.

[46]  R. Becker,et al.  The Genesis of Venture Capital - Lessons from the German Experience , 2003, SSRN Electronic Journal.

[47]  Venture Capitalist.  Taxation of a Venture Capitalist with a Portfolio of Firms , 2002 .

[48]  Roman Inderst,et al.  The Effect of Capital Market Characteristics on the Value of Start-Up Firms , 2002 .

[49]  Christian Keuschnigg,et al.  Tax Policy, Venture Capital, and Entrepreneurship , 2000 .

[50]  Burkhard Heer,et al.  Nonsuperneutrality of Money in the Sidrauski Model with Heterogenous Agents , 2003, SSRN Electronic Journal.

[51]  Carlos Fonseca Marinheiro,et al.  Output Smoothing in Emu and OECD: Can We Forego Government Contribution? A Risk Sharing Approach , 2003, SSRN Electronic Journal.

[52]  Darwin V. Neher.  Staged Financing: An Agency Perspective , 1999 .

[53]  J. Tirole,et al.  The Management of Innovation , 1994 .

[54]  Volker Grossmann,et al.  Firm Size and Diversification: Asymmetric Multiproduct Firms Under Cournot Competition , 2003, SSRN Electronic Journal.

[55]  J. Baten,et al.  Creating Firms for a New Century: Determinants of Firm Creation Around 1900 , 2003, SSRN Electronic Journal.

[56]  Carlo Devillanova,et al.  Capital-Skill Complementarity and the Redistributive Effects of Social Security Reform , 2003, SSRN Electronic Journal.

[57]  Paul A. Gompers.  Optimal Investment, Monitoring, and the Staging of Venture Capital , 1995 .

[58]  Arthur J. Hosios,et al.  On The Efficiency of Matching and Related Models of Search and Unemployment , 1990 .

[59]  Bjorn Sandvik,et al.  Optimal Taxation and Normalisations , 2003, SSRN Electronic Journal.

[60]  Dale J. Poirier,et al.  Relationship between Maternal Behavior During Pregnancy, Birth Outcome, and Early Childhood Development: An Exploratory Study , 2003 .

[61]  Uwe Walz,et al.  Convertible securities and optimal exit decisions in venture capital finance , 2001 .

[62]  Christian Keuschnigg,et al.  Start-Ups, Venture Capitalists and the Capital Gains Tax , 2002, SSRN Electronic Journal.

[63]  Annette Alstadsæter,et al.  The Dual Income Tax and Firms' Income Shifting Through the Choice of Organizational Form and Real Capital Investments , 2003 .

[64]  Erik Berglöf.  A Control Theory of Venture Capital Finance , 1994 .

[65]  Stefan Napel,et al.  Bargaining and Distribution of Power in the Eu's Conciliation Committee , 2003, SSRN Electronic Journal.

[66]  Patrizio Tirelli,et al.  A Simple and Flexible Alternative to the Stability and Growth Pact Deficit Ceilings: Is it at Hand? , 2003, SSRN Electronic Journal.

[67]  Thomas F. Hellmann,et al.  The Allocation of Control Rights in Venture Capital Contracts , 1998 .

[68]  Kjetil Bjorvatn,et al.  Decentralization and the Fate of Minorities , 2003, SSRN Electronic Journal.

[69]  Denis Gromb,et al.  Entrepreneurship in Equilibrium , 2002 .

[70]  Per Strömberg,et al.  Venture Capitalists as Principals: Contracting, Screening, and Monitoring , 2001 .

[71]  Josh Lerner,et al.  When Bureaucrats Meet Entrepreneurs: The Design of Effective 'Public Venture Capital' Programmes , 2002 .

[72]  Manju Puri,et al.  The Interaction between Product Market and Financing Strategy: The Role of Venture Capital , 1999 .

[73]  Lars-Erik Borge,et al.  The Relationships between Costs and User Charges: The Case of a Norwegian Utility Service , 2003, SSRN Electronic Journal.

[74]  Catherine Casamatta,et al.  Financing and Advising: Optimal Financial Contracts with Venture Capitalists , 2002 .

[75]  Michael Reiter,et al.  Business Cycles, Unemployment Insurance, and Calibration of Matching Models , 2003, SSRN Electronic Journal.