We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

This paper investigates the design of incentives in a dynamic adverse selection framework when agents' production technologies display learning effects and agents' rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show that...

This paper investigates the design of incentives in a dynamic adverse selection framework when agents' production technologies display learning effects and agents' rate of learning is private knowledge. In a simple two-period model with full commitment available to the principal, we show that...

Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC backing increases a startup's likelihood of reaching the right tails of the firm size and...

In the global clash for unveiling the 'innermost secrets' of the brain, the field of neuroscience is the most fitting contender. Neuroscience is not quite ready to win the war for now, but it is assuredly equipped to win some battles. Notwithstanding that entrepreneurship is fundamentally a...

Entrepreneurship education holds the potential to mitigate unemployment and boost prosperity, yet emotions, one of its sources of strength, remain underutilized. There is a strong consensus that emotions are tightly linked to learning processes, and vice versa. Across entrepreneurship education,...

The advent of significant advances in neuroscience has produced the capacity to examine the human brain at a profound level, yet the academic and practical value of existing evidence based on neuroscience techniques and methods within the field of entrepreneurship remains unexplored. To address...

This paper studies the role of trade for the joint uptake of AI-enabled automation in manufacturing and engineering. It develops an agent-based model (ABM) where the agents are heterogeneous manufacturers and engineering firms. The model features two technology-related business models:...

This paper evaluates the macroeconomic and financial risks of the energy transition using an extended MATRIX model, a multi-agent, multi-sector integrated assessment framework for the Euro Area. The model features endogenous, directed technical change in the energy sector and a decentralized...

Does FDI affect productivity growth, innovation, and knowledge sourcing activities ofdomestic firms? This study employs detailed firm-level panel-data from Estonia’smanufacturing sector to investigate different channels through which FDI can affectdomestic firms. I use instrumental variables...