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Rivalry and the dynamic instability of venture capital investment shares

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  • T. Parker Ballinger
  • Bradley T. Ewing
  • Mark A. Thompson

Abstract

This article examines the time-series properties of the US venture capital investments (VCI) to determine whether or not various sectors compete in the same market for venture capital funds. Using a battery of unit root tests, we find substantial evidence that VCI shares are nonstationary. Our findings are consistent with a high degree of rivalry for VCI among the different sectors.

Suggested Citation

  • T. Parker Ballinger & Bradley T. Ewing & Mark A. Thompson, 2013. "Rivalry and the dynamic instability of venture capital investment shares," Applied Economics Letters, Taylor & Francis Journals, vol. 20(12), pages 1150-1154, August.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:12:p:1150-1154
    DOI: 10.1080/13504851.2013.791013
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    References listed on IDEAS

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    Cited by:

    1. Ballinger, T. Parker & Habegger, Wendy & Jones, Clifton T. & Thompson, Mark A., 2016. "Convergence in Venture Capital Investments: Evidence from a Panel of 18 US Regions," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    2. Simon K. Medcalfe & Mark A. Thompson, 2017. "Further evidence on the geographical concentration of venture capital investments," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 229-235, July.

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