An Elementary Model of VC Financing and Growth

Jeremy Greenwood, Pengfei Han, Hiroshi Inokuma () and Juan Sanchez
Additional contact information
Hiroshi Inokuma: https://economics.wustl.edu/people/hiroshi-inokuma

Review, 2023, vol. 105, issue 1, 66-73

Abstract: This article uses an endogenous growth model to study how the improvements in financing for innovative start-ups brought by venture capital (VC) affect firm innovation and growth. Partial equilibrium results show how lending contracts change as financing efficiency improves, while general equilibrium results show that better screening and development of projects by VC investors leads to higher aggregate productivity growth.

Keywords: venture capital; start-ups (search for similar items in EconPapers)
JEL-codes: E13 E22 G24 L26 O16 O31 O40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... ncing-and-growth.pdf Full text (application/pdf)

Related works:
Working Paper: An Elementary Model of VC Financing and Growth (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:95462

DOI: 10.20955/r.105.66-73

Access Statistics for this article

Review is currently edited by Juan M. Sanchez

More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().