Tax policy, venture capital, and entrepreneurship

• 成果类型: Article; Proceedings Paper
• 署名作者: Keuschnigg, C; Nielsen, SB
• 署名单位: University of St Gallen; University of St Gallen; Copenhagen Business School; Copenhagen Business School
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(01)00170-0
• 发表日期: 2003
• 页码: 175-203
• 关键词: Entrepreneurship; venture capital; moral hazard; taxes; subsidies

摘要

The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk project each but have no own resources. Financiers provide funds, covering investment cost plus an upfront payment, in exchange for a share in the firm. The contract must include incentives to enlist full effort of entrepreneurs. Venture capitalists also assist with valuable business advice to enhance survival chances. The paper develops a general equilibrium framework with a traditional and an entrepreneurial sector and investigates the effects of taxes on the equilibrium level of managerial advice, entrepreneurship and welfare. It considers differential wage and capital income taxes, a comprehensive income tax, progressive taxation as well as investment and output subsidies to the entrepreneurial sector. (C) 2003 Elsevier Science B.V. All rights reserved.