Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. Conversely, authors who focus explicitly on start-up finance predict that entrepreneurs are the more likely to seek equity-like venture capital contracts, the more risky their projects ...
Discusses incentives for basic research, which were recently introduced in the German Institute for Economic Research, including both team and individual incentives. Possible problems arise from focussing on the measurable, crowding out intrinsic motivation and undesirable externalities. Furthermore, provides survey evidence on the perception of the incentives by the institute's researchers.
Die bundesweite Einführung der Juniorprofessur mit gleichzeitiger Abschaffung der Habilitation scheiterte im Juli 2004 aus verfassungsrechtlichen Gründen. Aus ökonomischer Sicht hat die Juniorprofessur hingegen viele Vorteile: Erstmals könnten Wissenschaftler/-innen in dem Alter, in dem sie typischerweise ihre höchste Forschungsproduktivität und Kreativität aufweisen, eigenverantwortlich forschen. ...
Using micro-level panel data of about 35,000 firms from the German Cost Structure Census, we analyze the differences of technical efficiency across industries. Technical efficiency is estimated by firms' fixed effects. One striking result is that the distribution of technical efficiency across industries is positively skewed. This is because the efficiency distribution is truncated at the lower end ...