Theoretical perspectives on public policy for venture capital

Abstract

Every work that sets out to evaluate the design and impact of government policy in the economic realm has to answer one fundamental question first, namely whether a case can be made for government intervention at all. The aim of this chapter is therefore to explain what exactly can justify government intervention in the venture capital market.¹

Boadway and Tremblay (2005) provide a broad overview of a closely related topic; their analysis focuses on public policies targeted at start-up entrepreneurs.