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Macroeconomics I

Paper Session

Saturday, Jan. 6, 2018 10:15 AM - 12:15 PM

Pennsylvania Convention Center, 112-A
Hosted By: Chinese Economic Association in North America
  • Chair: Charles Ka Yui Leung, City University of Hong Kong

Smoking, Health Capital, and Longevity: Evaluation of Personalized Cessation Treatments in a Lifecycle Model with Heterogeneous Agents

Li-Shiun Chen
,
Washington University-St. Louis
Ping Wang
,
Washington University-St. Louis
Yao Yao
,
Victoria University of Wellington

Abstract

TBD

Monetary Policy in Incomplete Market Models: Theory and Evidence

Marcus Hagedorn
,
University of Oslo
Iourii Manovskii
,
University of Pennsylvania
Kurt Elliott Mitman
,
Stockholm University

Abstract

TBD

Financing Ventures

Jeremy Greenwood
,
University of Pennslyvania
Pengfei Han
,
University of Pennsylvania
Juan Sanchez
,
Federal Reserve Bank of St. Louis

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