Evaluating the impact of public subsidies on a firm’s performance: a two-stage quasi-experimental approach
AbstractIn this paper we evaluate the effectiveness of regional R&D public programs in Catalonia (Spain) with a two-stage procedure. Firstly, 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 regard to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which maintain the same propensity to receive public subsidies. Secondly, and once a valid comparison group has been established, we compare the respective performance of each firm using regression techniques. As a result, we find that recipient firms, on average, seem to increase their value added as a direct result of public subsidy programs.
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Bibliographic InfoArticle provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.
Volume (Year): (2009)
Issue (Month): 16 ()
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More information through EDIRC
R&D policy; evaluation; firm performance; Propensity Score Matching;
Find related papers by JEL classification:
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
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