Taxes and Venture Capital Support

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Taxes and Venture Capital Support

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dc.contributor.author Keuschnigg, Christian en_US
dc.contributor.author Nielsen, Søren Bo en_US
dc.date.accessioned 2009-02-04T10:24:55Z
dc.date.available 2009-02-04T10:24:55Z
dc.date.issued 2003-11-21T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/6821
dc.description.abstract In this paper we set up a model of start-up finance under double moral hazard. Entrepreneurs lack own resources and business experience to develop their ideas. Venture capitalists can provide start-up finance and commercial support. The effort put forth by either agent contributes to the firm’s success, but is not verifiable. As a result, the market equilibrium is biased towards inefficiently low venture capital support. The capital gains tax becomes especially harmful, as it further impairs advice and causes a first-order welfare loss. Once the capital gains tax is in place, limitations on loss off-set may paradoxically contribute to higher quality of venture capital finance and welfare. Subsidies to physical investment in VC-backed startups are detrimental in our framework. Keywords: Venture capital, capital gains taxation, double moral hazard. JEL-Classification: D82, G24, H24, H25 en_US
dc.format.extent 34 s. en_US
dc.language eng en_US
dc.relation.ispartofseries LEFIC working paper;2003-03 en_US
dc.subject.other venturekapital en_US
dc.subject.other kursgevinstbeskatning en_US
dc.subject.other virksomhedens etablering en_US
dc.subject.other iværksættere en_US
dc.title Taxes and Venture Capital Support en_US
dc.type wp en_US
dc.accessionstatus modt03nov21 inrumo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for Nationaløkonomi en_US
dc.contributor.department Center for Law, Economics & Financial Institutions
dc.contributor.departmentshort ECON
dc.contributor.departmentshort LEFIC
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentuk Center for Law, Economics & Financial Institutions
dc.contributor.departmentukshort ECON
dc.contributor.departmentukshort LEFIC
dc.idnumber x656312776 en_US
dc.publisher.city København en_US
dc.publisher.year 2003 en_US


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