Eric Nasica | University of Nice is Sophia Antipolis, Nice, France (original) (raw)
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Papers by Eric Nasica
The topic of this paper is to analyze comparatively the interest and the advantages of the existe... more The topic of this paper is to analyze comparatively the interest and the advantages of the existence of heterogeneous institutions in the Venture Capital activity. We focus on the duality relevant in Europe between Independent Venture Capitalists and the Bank-Affiliated ones. We first discuss in the second section the different characteristics of these institutions and their comparative advantages in screening and financing risky projects. We then develop a theoretical model which analyses comparatively the two technologies: both IVCs and AVCs take the asymmetric risk in seed and are backed by hedge funds equity or banks at the second round. IVCs syndicate and AVCs use the internal ways of diversification of the bank. Screening technologies are activated in seed and symmetric risks managed during the development phase. We obtain analytical results conform to intuition in the analytical part of the model and concerning the relative advantages and deficits of the two systems. With a s...
The aim of this paper is to present a “Minskian” model which explicitly deals with the influence ... more The aim of this paper is to present a “Minskian” model which explicitly deals with the influence of the institutional dynamics on the relation between finance, investment and economic fluctuations. First, the Minskian foundations of the proposed analytical framework are highlighted. Second the dynamical properties of the model are studied, drawing the inferences of a stabilization policy. It is shown that the economy is unstable when the budget policy is not very sensitive to variations in private investment. On the contrary, when, the counter cyclical deficit constraint is flexible enough, the economy is stabilized. These results, that echo recent debates and proposals on budget deficits rules in the EMU, are fully consistent with the way Minsky considers that public authorities may “stabilize an unstable economy”.
The European Journal of the History of Economic Thought, 2009
This paper offers an institutionalist interpretation of Schumpeter's contribution to economics ba... more This paper offers an institutionalist interpretation of Schumpeter's contribution to economics based on an overall investigation of his works, from his early writings devoted to economic sociology to his late Capitalism, Socialism and Democracy, through his theory of economic development. This interpretation is then examined closely by revisiting the role of monetary, banking and financial institutions during the different phases of economic development. We conclude by maintaining that Schumpeter's overall framework is suitable and still very relevant for analysing institutional change.
Venture Capital investments combine skills and financial risks. The capacity of financial interme... more Venture Capital investments combine skills and financial risks. The capacity of financial intermediaries to assume financial risk has to meet managerial skills able to screen the projects, then to increase the number and the return of the successful projects among the selected ones. The screening tasks are devoted in seed stage to the Venture Capitalist in charge of the project (the leader). Improving the number and the quality of the successful projects is a task which is partly shared by the members of syndicates associated with the leader during the development stage. Venture capitalists are heterogeneous; there also exist many ways to fund a project; finally, there are many forms of syndicates. Looking at this diversity, the question is to find a relevant way to match -for each kind of Venture Capitalist and for each kind of project -the good financial solutions (which can be interpreted as a financial incentive) and the appropriate form of syndication. Is there a way to reach the best combination: this point is analyzed in depth in our paper. We first present a review of the literature on the nature and goals of funds providers on the one hand and the motives of syndication in the other hand. Then we propose an original model analyzing from the partners (venture capitalists and funds providers) and from the social points of view, the properties of the relevant available technologies associating more or less skillful leader, different forms of syndicates and of financial partners. A first set of results is devoted to the matching competencies of the leader and the syndicates within a given financial environment. A second set of results considers as endogenous the type of incentives introduced by the financial partners and the consequence of their optimization on the form of syndication promoted by the leaders, according their own skills and the quality of the syndicates. The influence of the level of risk and of the shape of the project are then analyzed on the optimal matching solutions.
The topic of this paper is to analyze comparatively the interest and the advantages of the existe... more The topic of this paper is to analyze comparatively the interest and the advantages of the existence of heterogeneous institutions in the Venture Capital activity. We focus on the duality relevant in Europe between Independent Venture Capitalists and the Bank-Affiliated ones. We first discuss in the second section the different characteristics of these institutions and their comparative advantages in screening and financing risky projects. We then develop a theoretical model which analyses comparatively the two technologies: both IVCs and AVCs take the asymmetric risk in seed and are backed by hedge funds equity or banks at the second round. IVCs syndicate and AVCs use the internal ways of diversification of the bank. Screening technologies are activated in seed and symmetric risks managed during the development phase. We obtain analytical results conform to intuition in the analytical part of the model and concerning the relative advantages and deficits of the two systems. With a s...
The aim of this paper is to present a “Minskian” model which explicitly deals with the influence ... more The aim of this paper is to present a “Minskian” model which explicitly deals with the influence of the institutional dynamics on the relation between finance, investment and economic fluctuations. First, the Minskian foundations of the proposed analytical framework are highlighted. Second the dynamical properties of the model are studied, drawing the inferences of a stabilization policy. It is shown that the economy is unstable when the budget policy is not very sensitive to variations in private investment. On the contrary, when, the counter cyclical deficit constraint is flexible enough, the economy is stabilized. These results, that echo recent debates and proposals on budget deficits rules in the EMU, are fully consistent with the way Minsky considers that public authorities may “stabilize an unstable economy”.
The European Journal of the History of Economic Thought, 2009
This paper offers an institutionalist interpretation of Schumpeter's contribution to economics ba... more This paper offers an institutionalist interpretation of Schumpeter's contribution to economics based on an overall investigation of his works, from his early writings devoted to economic sociology to his late Capitalism, Socialism and Democracy, through his theory of economic development. This interpretation is then examined closely by revisiting the role of monetary, banking and financial institutions during the different phases of economic development. We conclude by maintaining that Schumpeter's overall framework is suitable and still very relevant for analysing institutional change.
Venture Capital investments combine skills and financial risks. The capacity of financial interme... more Venture Capital investments combine skills and financial risks. The capacity of financial intermediaries to assume financial risk has to meet managerial skills able to screen the projects, then to increase the number and the return of the successful projects among the selected ones. The screening tasks are devoted in seed stage to the Venture Capitalist in charge of the project (the leader). Improving the number and the quality of the successful projects is a task which is partly shared by the members of syndicates associated with the leader during the development stage. Venture capitalists are heterogeneous; there also exist many ways to fund a project; finally, there are many forms of syndicates. Looking at this diversity, the question is to find a relevant way to match -for each kind of Venture Capitalist and for each kind of project -the good financial solutions (which can be interpreted as a financial incentive) and the appropriate form of syndication. Is there a way to reach the best combination: this point is analyzed in depth in our paper. We first present a review of the literature on the nature and goals of funds providers on the one hand and the motives of syndication in the other hand. Then we propose an original model analyzing from the partners (venture capitalists and funds providers) and from the social points of view, the properties of the relevant available technologies associating more or less skillful leader, different forms of syndicates and of financial partners. A first set of results is devoted to the matching competencies of the leader and the syndicates within a given financial environment. A second set of results considers as endogenous the type of incentives introduced by the financial partners and the consequence of their optimization on the form of syndication promoted by the leaders, according their own skills and the quality of the syndicates. The influence of the level of risk and of the shape of the project are then analyzed on the optimal matching solutions.