Capital Market Imperfections and Entrepreneurial Finance
Analysis of problems in capital markets for firm financing and institutional structures that address these problems. Investigation of asymmetric information between firms and potential investors and associated moral hazard and adverse selection problems that raise the cost of funds and constrain firm growth. Empirical tests for the presence of financing constraints on firms. A substantial portion of the course explores the role of venture capital, especially in the high-tech sector of the United States economy where venture capital is important for commercializing cutting-edge science. Prerequisite: Econ 4011. Econ 413 is recommended. EXAMS: IN-PERSON evening exam is Thursday, Oct. 7 (6-8pm). The IN-PERSON final exam for BOTH sections will be held from 1:00 - 3pm on Monday, Dec. 20.
Course Attributes: EN S; AS SSC; FA SSC; AR SSC