A General Equilibrium Study of Venture Capitalists' Effort on Entrepreneurship

Liukun Wu
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Abstract

In this paper, I propose a new general equilibrium model that explains stylized facts about venture capitalists' impact on their portfolio firms. Venture capitalists can help increase firms' productivity, yet they face increasing entry costs to enter. I characterize steady state effort choice, entry threshold, and mass of venture capitalists, and show how they are affected by change in upfront investment, interest rate, and entry costs. The key contribution is that public policy to stimulate startups by subsidizing upfront investments or reducing interest cost have limited success if not accompanied by an increasing supply of experts who can improve business ideas.
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风险资本家创业努力的一般均衡研究
在本文中,我提出了一个新的一般均衡模型,用以解释风险资本家对其所投资企业的影响。风险资本家可以帮助提高企业的生产率,但他们面临着越来越高的进入成本。我描述了风险资本家的稳态努力选择、进入门槛和质量,并说明了它们如何受到前期投资、利率和进入成本变化的影响。本文的主要贡献在于,如果没有越来越多的专家来改善商业创意,那么通过补贴前期投资或降低利息成本来刺激初创企业的公共政策将难以取得成功。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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