In this paper we look at the effectiveness of business networks created by alumni of different universities. In particular, we analyze the networking behavior of entrepreneurs in Germany through the emergent structures of their virtual social networks. We automatically collected the publicly accessible portion of the German business networking site Xing.com by crawling the Web. We then filtered...

Abstract Renewable energy is one of the alternative resources in Malaysia to replace fossil fuel use, which an important issue that needs be established. Some possible renewable sources are wind, hydro and solar. Since 2019, various incentives announced by Malaysian Ministry Energy Natural Resources (KeTSA) enhance development line with Government policy. However, today, contrast participation ...

We model technological progress as an external effect of organizational design, focusing on how factories, based on labor division, could spawn the industrial revolution. Dividing labor, as Adam Smith argued, facilitates invention by observers of production processes. However, entrepreneurs cannot internalize this benefit and choose labor division to facilitate monitoring. Equilibrium with few ...

The challenge of the current study is to introduce entrepreneurship into Microeconomics theory for greater extendability and realism yet capture its unique aspects in a manageable analytical model. The model starts with a perfectly competitive market and then adds a subset of agents with unique skills, capabilities, startup savings, and risk preferences, called entrepreneurs. These profit-seeki...

The objective of this work in progress is to endogenise the firm sector in the classic Diamond Dybvig setup. This should better able us to understand how shocks are transmitted within sectors. 1 The basic setup and the players • Consider an economy with three periods, t = 0, 1, 2. • There exists a single divisible consumption good in each period. • There are three types of agents: depositors, f...

Financial markets crucially rely on the development of an infrastructure dedicated to the enforcement of contracts. Here we study the effects of limited enforcement capacity on financial contracting by proposing a new theory of costly state verification. In our model the principal contracts with a population of entrepreneurs, who borrow to finance risky projects under limited liability. To sust...

This paper is a remarkable attempt to take seriously the financial accelerator mechanism in an open economy and confront it to the data. The authors basically extend the Bernanke, Gertler, and Gilchrist (2000) model to a small open economy. The two main ingredients are financially constrained entrepreneurs, introducing a financial accelerator mechanism, and sticky prices, giving a role to monet...

Diversification through a financial intermediary has the benefit of transforming loans that need costly monitoring into bank deposits that do not. We show that financial intermediation in a costly state verification model has a cost not yet analyzed: it allows for the existence of multiple equilibria, some of which are characterized by borrowers defaulting on their loans because they expect oth...

This paper studies how comparing can be used to provide information in financial markets in the presence of a hidden characteristics problem. Although an investor cannot precisely estimate the future returns of an entrepreneur’s projects, the investor can mitigate the asymmetric information problem by ranking different entrepreneurs and financing only the very best ones. Information asymmetry c...