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Estimating Unobserved Complementarities between Entrepreneurs and Venture Capitalists (view source)
Revision as of 11:39, 5 July 2019
, 11:39, 5 July 2019no edit summary
|Has paper status=In development
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==Notes from Call==
On July 5th at 10am, the co-authors had a conference call. These are the notes from that call:
Ed described the data.
Chenyu said that he is running the estimation as two periods: one before and one after dot com crash. He is estimating:
*VCExperience (# prior deals in pccode20) x ranking ($amount or overall, lagged 1yr or 5yr)
*No. of Co-investors
*Distributional params of unobservables
The estimates are quite stable. But when he includes VC Experience x co-investors, estimates come much larger for unobserved hetero. It is possible that this is because of the optimization process. It uses a GA and the objective function is non-smooth because it relies upon Method-of-Moments (and hence the GA might not be finding the global max/min). However, it could also be a with the moments. This is the current sticking point. Possible solutions are:
*Replace the variable with total number of previous startups by VC?
*Scale Co-investors?
Ed is going to reproduce table 5 with new regression evidence for city ranking and serials. He's also going to check what is in dropbox and clear it up.
To Discuss:
*Patents - to many zeros, Serials - not specific to a market
Counterfactual
*No resorting
*Take away different categories
**Mkt vs. Non-mkt
Compute:
*Currently running it on a 120 core cluster. Each job takes 12 cores - 20 seconds for each evaluation, 6 free params.
*Needs Low RAM (3GB per core).
*Rochester - 120hr max war time
==Latest Work==
