Public Economics Gone Wild: Lessons from Venture Capital
Douglas Cumming
York University - Schulich School of Business
May 6, 2013
Abstract:
A recent article in the Journal of Public Economics has asserted, among other things, that government venture capital funds in Europe have crowded out private venture capital. In this research note, I explain that the findings in that paper are based on empirical measures that are completely flawed. Moreover, I show with data spanning 13 countries and the years 1989-2011 that government venture capital funds in Europe have not crowded out private venture capital investment.
Number of Pages in PDF File: 16
Keywords: Venture capital, Public Policy, Government sponsorship, Tax, Crowding out
JEL Classification: G24, G28, G32, G38, K22
working papers series
Suggested Citation
Cumming, Douglas J., Public Economics Gone Wild: Lessons from Venture Capital (May 6, 2013). Available at SSRN: http://ssrn.com/abstract=2194452 or http://dx.doi.org/10.2139/ssrn.2194452
