capital

Motivated by the different development stages of both, the venture capital (VC) as well as the life science industry in the USA and Europe, the authors investigate portfolio strategies of US-American and European VC firms active in this sector. Results show that US life science VCs are equally likely to have a focus on early stage ventures and to diversify across investment stages as their European counterparts.

Recent literature in Industrial Organization has shown that the threat of entry limits the price setting power of dominant firms and stimulates the incumbents to increase innovations - both leading to welfare improvements. n the other hand dominant firms as incumbents strive to build up entry preventing capital. In such an environment of heterogeneous firms, the authors study the dynamics of competition as suggested in an earlier paper by Brock (1983).

The Capital Access Index is a comprehensive analysis of the breadth, depth and vitality of capital markets around the world. It is based on the simple premise, but complex measurements, showing that efficient financial markets – making capital accessible to the entrepreneurs who can use it to grow and sustain companies and generate jobs – are the key for long-term growth and reducing poverty and income polarization.

This paper provides a dynamic optimization model of durable good inventories to study the interactions between investment demand and production of capital goods.

Systematic analysis of U.S. capital markets reveals important empirical facts that analytical modeling or empirical research seeking to explain the 1998-2001 movements needs to recognize.

When investigating the role of regulatory capital in bank mergers and acquisitions the authors find that i.e. U.S. targets are better capitalized than their acquirers and non-acquired peers and that U.S. banks maintain higher capital than European banks.

Whether or not the marginal product of capital (MPK) differs across countries is a question that keeps coming up in discussions of comparative economic development and patterns of capital flows, according to the authors. They find that the MPK is much higher on average in poor countries. However, the financial rate of return from investing in physical capital is not much higher in poor countries, so heterogeneity in MPKs is not principally due to financial market frictions.

The picture often painted is that foreign capital inflows in China and India are prominently linked to rapid growth at the national level, and contribute to widening income disparities at the provincial/state level. In this paper, the authors revisit Krugman’s (1993) contention that foreign capital can hardly be considered an important income growth driver, when in most developing countries it only accounts for a fractional share of gross capital formation.

The picture often painted is that foreign capital inflows in China and India are prominently linked to rapid growth at the national level, and contribute to widening income disparities at the provincial/state level. In this paper, the authors revisit Krugman’s (1993) contention that foreign capital can hardly be considered an important income growth driver, when in most developing countries it only accounts for a fractional share of gross capital formation.

The authors extend their earlier work, focusing on the links between capital account liberalization, legal and institutional development, and financial development, especially that in equity markets. In a panel data analysis encompassing 108 countries and twenty years ranging from 1980 to 2000, they explore several dimensions of the financial sector.