Similar Search Results

Jovanovic, Boyan - 2020

We study private equity in a dynamic general equilibrium model and ask two questions: (i) Why does the investment of venture funds respond more strongly to the business cycle than that of buyout funds? (ii) Why are venture funds returns higher than those of buyout? On (i), venture brings in new...

Persistent link: https://www.econbiz.de/10012482249

Bubbles in Prices of Exhaustible Resources

Jovanovic, Boyan - 2007

Aside from the equilibrium that Hotelling (1931) displayed, his model of non-renewable resources also contains a continuum of bubble equilibria. In all the equilibria the price of the resource rises at the rate of interest. In a bubble equilibrium, however, the consumption of the resource peters...

Persistent link: https://www.econbiz.de/10012465330

Optimal Migration : A World Perspective

Benhabib, Jess - 2007

We ask what level of migration would maximize world welfare. We find that skill-neutral policies are never optimal. An …

Persistent link: https://www.econbiz.de/10012465785

Externalities and Growth Accounting

Benhabib, Jess - 1989

We reexamine several bodies of data on the growth of output, labor, and capital, within the context of a model that admits the possibility of an externality to the capital input. The model is an augmented version of Paul Romer's (1987) reformulation of the Solow model. Unlike Romer, however, we...

Persistent link: https://www.econbiz.de/10012475847

Uncertainty and Growth Disasters

Jovanovic, Boyan - 2020

This paper documents several facts on the real effects of economic uncertainty. First, higher uncertainty is associated with a more dispersed distribution of output growth. Second, the relation is highly asymmetric: A rise in uncertainty is associated with a sharp decline in the lower tail of...

Persistent link: https://www.econbiz.de/10012482243

Occupational Choice and Development

Eeckhout, Jan - 2007

The rise in world trade since 1970 has raised international mobility of labor services. We study the effect of such a … globalization of the world's labor markets. We find that when people can choose between wage work and managerial work, the output … theory also establishes that after economic integration, the high skill countries see a disproportionate increase in …

Persistent link: https://www.econbiz.de/10012464960

Inequality

Eeckhout, Jan - 1998

In a growth model, rent-grabbing and free riding can give rise to inequality in productivity and firm size. Inequality among firms affects a firm's incentive to free ride or to grab rents, and, hence, the incentive to invest in research and training We follow Lucas and Prescott (1971) and...

Persistent link: https://www.econbiz.de/10012471971

Obsolescence of Capital and Investment Spikes

Fishman, Arthur - 2020

The prospect of capital obsolescence inhibits investment. Investors thus become more optimistic when the obsolescence of their capital slows down. We propose a model with no fixed costs of investment, and random technological progress that induces obsolescence of capital in place. Spikes occur...

Persistent link: https://www.econbiz.de/10012482236

Structural Breaks in an Endogenous Growth Model

Cogley, Timothy - 2020

We study the effects of parameter uncertainty prompted by structural breaks. In our model, agents respond differently to uncertainty prompted by regime shifts in shock processes than they react to comparable perceived increases in shock volatility. The magnitude of the response to an increase in...

Persistent link: https://www.econbiz.de/10012482245

On the Return to Venture Capital

Jovanovic, Boyan - 2007

We provide a model that links the high return to venture equity to the impatience of the VCs. VCs are scarce, and hence, they have market power and a high return on their investments. As a result, VCs are eager to terminate non-performing ventures so they can move on to new ones. The scarcity of...

Persistent link: https://www.econbiz.de/10012465782