Abstract

http://ssrn.com/abstract=2002287
 
 

References (39)



 


 



Inter-Company Matching and the Supply of Informed Capital


Fernando Anjos


NOVA School of Business and Economics

Alejandro Drexler


Federal Reserve Bank of Chicago

December 19, 2014

Journal of Economic Behavior and Organization, Vol. 111, 2015

Abstract:     
We model an economy where it is beneficial for high-type organizations to collaborate with other high types, and where this assortative-matching pattern allows informed financiers to provide inexpensive funds to partner companies of their high-type ventures. The expected funding benefit associated with finding high-type partners increases in the supply of informed capital, which creates an additional incentive for high types to search. Our main result is that, in such a setting, a critical mass of informed capital is sometimes required for an efficient equilibrium to obtain. We provide a novel channel for how the financial sector can impact real outcomes, specifically by affecting matching patterns.

Number of Pages in PDF File: 48

Keywords: financial intermediation, matching, venture capital

JEL Classification: D20, D80, G24, G32, L20


Open PDF in Browser Download This Paper

Date posted: February 10, 2012 ; Last revised: January 24, 2015

Suggested Citation

Anjos, Fernando and Drexler, Alejandro, Inter-Company Matching and the Supply of Informed Capital (December 19, 2014). Journal of Economic Behavior and Organization, Vol. 111, 2015. Available at SSRN: http://ssrn.com/abstract=2002287 or http://dx.doi.org/10.2139/ssrn.2002287

Contact Information

Fernando Anjos (Contact Author)
NOVA School of Business and Economics ( email )
Campus de Campolide
Lisbon, 1099-032
Portugal
HOME PAGE: http://https://sites.google.com/site/fernandoanjossite/
Alejandro Drexler
Federal Reserve Bank of Chicago ( email )
230 S La salle St, Chicago
Austin, IL 60604
United States
Feedback to SSRN


Paper statistics
Abstract Views: 603
Downloads: 89
Download Rank: 191,150
References:  39
Paper comments
No comments have been made on this paper

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 1.187 seconds