Evaluating the impact of public subsidies on a firm's performance : a quasi-experimental approach
Duch Brown, Néstor (Universitat de Barcelona)
Montolio Estivill, Daniel (Universitat de Barcelona)
Mediavilla, Mauro (Universitat de Barcelona)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint:	Xarxa de Referència en Economia Aplicada (XREAP) 2007
Description:	34 p.
Abstract:	Many regional governments in developed countries design programs to improve the competitiveness of local firms. In this paper, we evaluate the effectiveness of public programs whose aim is to enhance the performance of firms located in Catalonia (Spain). We compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score Matching (PSM) methodology to construct a control group which, with respect to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which retain the same propensity to receive public subsidies. Once a valid comparison group has been established, we compare the respective performance of each firm. As a result, we find that recipient firms, on average, change their business practices, improve their performance, and increase their value added as a direct result of public subsidy programs.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Xarxa de Referència en Economia Aplicada (XREAP). Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series:	XREAP ; 2007-07
Document:	Working paper
Subject:	Public policy ; Evaluation studies ; Firm performance ; Propensity Score Matching ; Políticas públicas ; Evaluación ; Resultados empresariales

34 p, 622.3 KB

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Research literature > Studies