generates a random cash flow and that requires investment that the entrepreneur raises from a competitive market. The project …

open regional economy. First, we describe the first best investment contract, we study the second best investment contract … (collateralizable income) on investment by entrepreneurs. Next, we analyze the interaction between entrepreneurs and venture capitalists … second period entrepreneurs. We show that a rise in the per capita debt has an effect on investment that is analogous to a …

We study economic growth and investment income taxation in a region that is creative in the sense of Richard Florida … consumption goods and the other produces investment or physical capital goods. Our analysis of the working of this creative region … effect that the taxation of investment income has on the equilibrium growth rate of consumption in our creative region …