Duchenne muscular dystrophy (DMD) is a rare genetic disorder affecting thousands of individuals, mainly young males, worldwide. Currently, the disease has no cure, and is fatal in all cases. Advances in our understanding of the disease and innovations in basic science have recently allowed...

We study the link between mortgage debt and entrepreneurship using a model of occupational choice and housing tenure in a setting where homeowners do not default on their debt. Our model predicts that, as long as the mortgage interest rate exceeds the rate of interest on liquid wealth: (i)...

Online equity crowdfunding is a novel form of entrepreneurial finance, through which ventures can sell shares to large numbers of small investors. We analyze the motivations and decision criteria of equity crowdfunding investors using responses to a large-scale survey. We find, first, that...

We study an equilibrium model with disagreement about the likelihood of successful innovations. We show that disagreement stimulates aggregate economic growth and overcomes market failures that would otherwise occur in an equilibrium without disagreement. The higher growth with disagreement...

We study the link between homeownership, mortgage debt, and entrepreneurship using a model of occupational choice and housing tenure where homeowners commit to mortgage payments. Our model predicts that, as long as mortgage rates exceed the rate of interest on liquid wealth: (i) mortgage debt,...

The technical uncertainty associated with the cost to completion of an Ramp;D project, whilst idiosyncratic, is also inherently unhedgeable. We extend existing real options models of Ramp;D investment to incorporate the cost of bearing this unhedgeable risk and find it decreases risk-averse...

Based on a unique dataset taken from the internal credit rating database of a large German bank we investigate capital structure determinants of German small and medium sized firms for a period of 2000 to 2014. In this economically favorable period for German small and medium sized firms with...

Social status concerns effect investors' decisions by driving a wedge in attitudes towards aggregate and idiosyncratic risks. I model such concerns by emphasizing the desire to quot;get ahead of the Joneses,quot; which implies that investors' aversion to idiosyncratic risk is lower than their...

The valuation of start-up firms is challenging, yet highly relevant for entrepreneurs and financiers alike. We reverse-engineer fair-value multiples by comparing the firm value at the time of financing with the firm value at the time of exit. Our framework produces reliable valuation multiples...

We study the link between homeownership and entrepreneurship using a model of occupational choice and housing tenure where homeowners commit a fixed budget to mortgage payments. Our model predicts that: (i) mortgage commitments, by amplifying risk aversion, diminish the likelihood that...