Keuschnigg, Christian; Nielsen, Soren Bo - C.E.P.R. Discussion Papers - 2000
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 equity finance. They must structure the entrepreneur’s profit share … an entrepreneurial sector, the Paper investigates the effects of taxes on the equilibrium level of entrepreneurship and …