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Keuschnigg, Christian
Year of Publication: 
Series/Report no.: 
CESifo Working Paper 1066
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.
venture capital
double moral hazard
public policy
Document Type: 
Working Paper

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