Who Creates New Firms When Local Opportunities Arise?

A growing theoretical and empirical literature shows that new business formation is key to understanding how economies respond to economic shocks. For example, new firms generate the majority of jobs created in response to fluctuations in local demand or following oil and gas discoveries.

The magnitude of the firm entry…

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Venture Capital Contracts

A large body of academic work examines the problem of financial contracting, and frequently uses the context of an entrepreneur negotiating a financing deal with an investor. Entrepreneurial firms are key drivers of innovation and employment growth, and the efficient allocation of capital to early stage firms is crucial to…

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