Government Financing of R&D: A Mechanism Design Approach
نویسندگان
چکیده
We study how to design an optimal government loan program for risky R&D projects with positive externalities. With adverse selection, the contract involves a high interest rate but nearly zero cofinancing by entrepreneur. This contrasts sharply observed schemes. selection and moral hazard, allowing two levels of effort entrepreneur, policy consists menu at most contracts, one self-financing second lower plus cofinancing. Calibrated simulations assess welfare gains from policy, programs, direct subsidy private venture capital firms. The vary size externalities, cost public funds, effectiveness industry. (JEL D82, D86, G24, L26, O31, G32, H81)
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ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2021
ISSN: ['1945-7669', '1945-7685']
DOI: https://doi.org/10.1257/mic.20190053