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Pennsylvania Convention Center, 112-A
Hosted By:
Chinese Economic Association in North America
Keywords: capital gains taxation, dynamic contract, endogenous growth, evaluating, funding rounds, growth regressions, IPO, monitoring, startups, research and development, venture capital
Macroeconomics I
Paper Session
Saturday, Jan. 6, 2018 10:15 AM - 12:15 PM
- Chair: Charles Ka Yui Leung, City University of Hong Kong
Monetary Policy in Incomplete Market Models: Theory and Evidence
Abstract
TBDTBD
Abstract
TBDFinancing Ventures
Abstract
The relationship between venture capital and growth is examined using an endogenous growth model incorporating dynamic contracts between entrepreneurs and venture capitalists. At each stage of financing, venture capitalists evaluate the viability of startups. If viable, VCs provide funding for the next stage. The success of a project depends on the amount of funding. The model is confronted with stylized facts about venture capital; viz., statistics by funding round concerning the success rate, failure rate, investment rate, equity shares, and the value of an IPO. Raising capital gains taxation reduces growth and welfare.Keywords: capital gains taxation, dynamic contract, endogenous growth, evaluating, funding rounds, growth regressions, IPO, monitoring, startups, research and development, venture capital
Discussant(s)
Xuan Song Tam
,
City University of Hong Kong
Shane Hsuan-Li Su
,
National Taiwan University
Wan-Jung Cheng
,
Academia Sinica
Charles Ka Yui Leung
,
City University of Hong Kong
JEL Classifications
- E0 - General