Wall Street and Silicon Valley: A Delicate Interaction

• 成果类型: Article
• 署名作者: Angeletos, George-Marios; Lorenzoni, Guido; Pavan, Alessandro
• 署名单位: Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; Northwestern University; Centre for Economic Policy Research - UK
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdac043
• 发表日期: 2023
• 页码: 1041-1083
• 关键词: information acquisition; public communication; stock-market; social value; prices; PRIVATE; others; issues; hot; expectations

摘要

Entrepreneurs and venture capitalists are concerned about investors' beliefs in asset markets because these beliefs shape the value of a potential IPO and the possibility to expand. Investors' beliefs, on the other hand, can be influenced by start-up activity insofar as the latter contains valuable information about eventual profitability. This two-way feedback is shown to generate excessive, non-fundamental, waves in start-up activity, IPOs, and asset prices. Policies that lean against the wind can improve welfare, without requiring an informational advantage by the government.