dunnettreader + innovation + profit   3

Egmont Kakarot-Handtke - Schumpeter and the Essence of Profit :: SSRN - May 2011, update May 2015
University of Stuttgart - Institute of Economics and Law -- Schumpeter had a clear vision of the developing economy, but he did not formalize it. The quest for a germane formal basis is in the following guided by the general question: what is the minimum set of foundational propositions for a consistent reconstruction of the evolving money economy? We start with three structural axioms. The claim of generality entails that it should be possible to free Schumpeter’s approach from its irksome Walrasian legacy and to give a consistent formal account of the elementary circular flow that served him as a backdrop for the analysis of the entrepreneur-driven market system. -- Pages in PDF File: 28 -- Keywords: new framework of concepts, structure-centric, axiom set, profit, money, credit, structural stress, catching-up process, monopoly -- downloaded pdf to Note
paper  SSRN  economic_theory  economic_history  intellectual_history  19thC  20thC  Schumpeter  economic_growth  economic_sociology  entrepreneurs  profit  investment  Innovation  creative_destruction  money  markets-structure  monopoly  prices  firms-theory  neoclassical_economics  equilibrium  downloaded 
september 2015 by dunnettreader
Valuing Private Equity - Morten Sorensen, Neng Wang, Jinqiang Yang | NBER Nov 2013
NBER Working Paper No. 19612
Issued in November 2013 -- downloaded pdf to Note

We investigate whether the performance of Private Equity (PE) investments is sufficient to compensate investors (LPs) for risk, long-term illiquidity, management and incentive fees charged by the general partner (GP). We analyze the LP's portfolio-choice problem and find that management fees, carried interest and illiquidity are costly, and GPs must generate substantial alpha to compensate LPs for bearing these costs. Debt is cheap and reduces these costs, potentially explaining the high leverage of buyout transactions. Conventional interpretations of PE performance measures appear optimistic. On average, LPs may just break even, net of management fees, carry, risk, and costs of illiquidity.
financial_system  financial_innovation  finance_capital  investment  risk  profit  equity  Innovation  corporate_finance  leverage  downloaded  EF-add 
november 2013 by dunnettreader

related tags

18thC  19thC  20thC  21stC  banking  capitalism  central_banks  competition  corporate_finance  creative_destruction  credit  division_of_labor  downloaded  economic_growth  economic_history  economic_models  economic_sociology  economic_theory  EF-add  Enlightenment  entrepreneurs  equilibrium  equity  finance_capital  financial_crisis  financial_innovation  financial_regulation  financial_system  firms-theory  free_trade  government-roles  imperialism  increasing_returns  Innovation  innovation-government_policy  Instapaper  intellectual_history  intellectual_history-distorted  investment  labor  Labor_markets  labor_theory_of_value  laisser-faire  lender-of-last-resort  leverage  macroeconomics  marginalists  market-size_of  markets  markets-dependence_on_government  markets-failure  markets-structure  market_fundamentalism  market_manipulation  mercantilism  monetary_theory  money  monopolies  monopoly  neoclassical_economics  paper  prices  profit  property_rights  regulation  regulatory_capture  rents  risk  Schumpeter  Scottish_Enlightenment  social_theory  sociology_of_knowledge  SSRN  technology  trade-theory  wages 

Copy this bookmark:



description:


tags: