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Effect of General Uncertainty on Venture-Capital Investments: A Cross-Country Study


  • Goel, Rajeev K.

    () (Illinois State University, Department of Economics, Department of Economics Campus)

  • Hasan, Iftekhar

    (Lally School of Management and Technology, Rensselaer Polytechnic Institute)

  • Ram, Rati

    () (Economics Department, Illinois State University)


Using panel data for 19 OECD countries covering the period 1986-1995, we find effect of general economic uncertainty on venture-capital investments to be significantly negative. The more irreversible late-stage venture-capital investments are much more adversely affected by such uncertainty than earlystage investments.

Suggested Citation

  • Goel, Rajeev K. & Hasan, Iftekhar & Ram, Rati, 2004. "Effect of General Uncertainty on Venture-Capital Investments: A Cross-Country Study," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 57(3), pages 305-313.
  • Handle: RePEc:ris:ecoint:0129

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    References listed on IDEAS

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    Cited by:

    1. Rajeev Goel & Iftekhar Hasan, 2005. "An IT professional’s dilemma: be an entrepreneur or a consultant?," Netnomics, Springer, vol. 7(1), pages 17-25, April.

    More about this item


    Venture-capital; Investment irreversibility; Uncertainty;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General


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