|
on Project, Program and Portfolio Management |
| By: | Kerr, William R.; Nanda, Ramana |
| Abstract: | We review the recent literature on the financing of innovation, inclusive of large companies and new startups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multi-stage innovation projects and how this impacts optimal financing design. We further highlight the strong interaction between financing choices for innovation and changing external conditions, especially reduced experimentation costs. |
| Keywords: | finance, innovation, entrepreneurship, banks, venture capital, experimentation |
| JEL: | G21 G24 L26 M13 O31 O32 |
| Date: | 2015–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_028&r=ppm |
| By: | Romuald Elie; Dylan Possama\"i |
| Abstract: | In a framework close to the one developed by Holmstr\"om and Milgrom [44], we study the optimal contracting scheme between a Principal and several Agents. Each hired Agent is in charge of one project, and can make efforts towards managing his own project, as well as impact (positively or negatively) the projects of the other Agents. Considering economic Agents in competition with relative performance concerns, we derive the optimal contracts in both first best and moral hazard settings. The enhanced resolution methodology relies heavily on the connection between Nash equilibria and multidimensional quadratic BSDEs. The optimal contracts are linear and each agent is paid a fixed proportion of the terminal value of all the projects of the firm. Besides, each Agent receives his reservation utility, and those with high competitive appetence are assigned less volatile projects, and shall even receive help from the other Agents. From the principal point of view, it is in the firm interest in our model to strongly diversify the competitive appetence of the Agents. |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1605.08099&r=ppm |
| By: | Randall Jackson (Regional Research Institute, West Virginia University); Sergio Rey (School of Geographical Sciences and Urban Planning, Arizona State University); Péter Járosi (Regional Research Institute, West Virginia University) |
| Abstract: | Despite the growing need for an improved understanding of complex relationships among interacting systems, critical air, water, energy and socio-economic system research is carried out independently far too often. When it is comprehensively approached within integrated modeling environments, research teams often must recreate modeling foundations on which to base their own research, often because they are unable to access similar foundations already established by others. Moreover, there is an increasing awareness that energy, water, and environmental issues are best studied at the regional level, and many of the most relevant human-environmental interactions are tied to production and consumption technologies that themselves are tightly bound to regional economic systems that comprise national economies. We need to integrate and model these interacting systems comprehensively, and in an open access environment that promotes interaction among scholars, and database and model sharing to eliminate wasteful and redundant foundation infrastructure building. The pace of new knowledge development can be advanced radically by adopting a common and well-tested integrated systems modeling approach for widespread scientific use and development, supporting a research community that spans a wide range of problem domains. The future of regional science research thus lies in the integrated and comprehensive modeling of interacting systems. This paper describes our vision of this open science future, which we believe will rest on an open source and object-oriented foundation. We describe OASIS, a specific exemplar project now underway designed to fill the current integrated systems science infrastructure void with a framework whose evolutionary character will ultimately reflect the conceptual strengths and contributions of a large community of scholars. The result will be distinguished not only by the collective wisdom of the modeling community, but also by careful attention to the mechanisms that support replication and reproducibility. With the advantage of 21st century technology, object oriented open source open science will deepen our understanding and radically accelerate the pace of knowledge building in coming decades. We see this as a fundamentally new knowledge building paradigm that will dominate future integrated systems research. |
| Keywords: | Regional Economics |
| JEL: | R1 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:rri:wpaper:2016wp02&r=ppm |
| By: | Christopher Wada (University of Hawaii Economic Research Organization, University of Hawaii at Manoa); Kimberly Burnett (University of Hawaii Economic Research Organization, University of Hawaii at Manoa); Jason Gurdak (San Francisco State University) |
| Abstract: | The water-energy-food (WEF) nexus is quickly becoming one of the most critical global environmental challenges of the twenty first century. However, WEF systems are inherently complex; they typically are dynamic and span multiple land or agro-ecosystems at a regional or global scale. Addressing this challenge requires a systems approach to optimal and sustainable resource management across multiple dimensions. To that end, using Pajaro Valley (California) as a case study, our research aims to (1) highlight synergies and tradeoffs in food and water production, (2) build a dynamic framework capable of examining intertemporal resource relationships, and (3) detail the steps required to develop incentive-compatible financing of the resulting management plans when benefits are not distributed uniformly across users. Using a stylized model, we find that in the long run, inland growers benefit from the halting of seawater intrusion (SWI) due to overpumping of groundwater. We also calculate that the water provided by the proposed College Lake Multi-Objective Management Program—a plan designed to halt SWI and support sustainable water and agricultural development in the region—will generate net revenue of $40-58 million per year, compared to an annualized cost of less than $3 million. An equal cost-sharing plan would be desirable if the benefit of the project exceeded $1,268 per year for each well owner. Since this may not necessarily be the case for smaller well owners, one possible alternative is to allocate costs in proportion to expected benefits for each user. |
| Keywords: | water-energy-food nexus, sustainable agriculture, groundwater management, saltwater intrusion, cost-benefit analysis, Pajaro Valley |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2016-6&r=ppm |
| By: | Savvakis C. Savvides (JDINT’L, Department of Economics, Queen’s University, Canada) |
| Abstract: | The article discusses the enormous private debt in Cyprus and how it impacts the conditions for economic recovery. It stresses the need more drastic and decisive action from the Government including the participation of international multilateral financiers in reconstructing and funding viable institutions in Cyprus which can bring about change in the real economy. It is further noted that the unprecedented levels of private debt and non-performing loans in combination with the fact that the bulk of the deposits in the banking system are foreign owned while almost the whole of the loans weigh on Cypriots make a potential recovery through conventional methods alone unlikely to be successful. It is suggested that in order for a steady and sustainable growth to take place the national currency must first reflect its true exchange value when taking the fundamentals and facts of Cyprus into consideration rather than those of Europe as a whole. It is argued that the creation of a professionally staffed financing institution is of paramount importance to act as a reliable and independent advisor to the Government in the mould of Development Agencies in Ireland and the Netherlands with respect to the involvement of the Government in public sector projects and Private Public Partnerships and most importantly in acting as a competent intermediary for the need to convert debt to equity through viable projects. The new institution should also take the lead in disentangling the complex web of loans and collaterals currently weighing on business enterprises and to provide project financing solutions. Through this mechanism the Government and possibly other European institutions can join in to back this process and support though own funds economic development where it makes a difference to the economy. |
| Keywords: | Private debt, repayment capability, project evaluation, corporate lending, credit risk. |
| JEL: | D61 G17 G21 G32 G33 H43 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:290&r=ppm |