Evaluating the impact of public subsidies on a firm's performance: A quasi-experimental approach


Autoria(s): Duch Brown, Néstor; Montolio Estivill, Daniel; Mediavilla, Mauro
Contribuinte(s)

Xarxa de Referència en Economia Aplicada (XREAP)

Data(s)

2007

Resumo

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.

Formato

34 p.

637223 bytes

application/pdf

Identificador

http://hdl.handle.net/2072/13020

Idioma(s)

eng

Publicador

Xarxa de Referència en Economia Aplicada (XREAP)

Relação

XREAP;2007-07

Direitos

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Palavras-Chave #Política pública #Avaluació #Empreses #Subvencions #Catalunya #33 - Economia #338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus
Tipo

info:eu-repo/semantics/workingPaper