Department of Economics
Information about this author at RePEc
NBER Working Papers and Publications
|April 2011||The Importance of Trust for Investment: Evidence from Venture Capital|
with Marco Da Rin, Thomas F. Hellmann: w16923
We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment decisions. This holds even after controlling for investor and company fixed effects, geographic distance, information and transaction costs. The national identity of venture capital firms' individual partners further contributes to the effect of trust. Education and work experience reduce the effect of trust but do not eliminate it. We also examine the relationship between trust and sophisticated contracts involving contingent control rights and find that, even after controlling for endogeneity, they are c...
Published: Laura Bottazzi & Marco Da Rin & Thomas Hellmann, 2016. "The Importance of Trust for Investment: Evidence from Venture Capital," Review of Financial Studies, vol 29(9), pages 2283-2318.
|August 2005||The International Dynamics of R&D and Innovation in the Short and in the Long Run|
with Giovanni Peri: w11524
In this paper we estimate the dynamic relationship between employment in R&D and generation of knowledge as measured by patent applications across OECD countries. In several recently developed models, known as `idea-based' models of growth, the afore mentioned "idea-generating" process is the engine of productivity growth. Moreover, in real business cycle models technological shocks are an important source of fluctuations. Our empirical strategy is able to test whether knowledge spillovers are strong enough to generate sustained endogenous growth and to estimate the quantitative impact of international knowledge on technological innovation of a country in the short and in the long run. We find that a country's stock of knowledge, its R&D resources and the stock of international knowledge m...
Published: Peri, Giovanni and Laura Bottazzi. “The Dynamics of R&D and Innovation in the Short Run and in the Long Run." Economic Journal (March 2007).