Evaluating the impact of firm subsidy using a multilevel propensity score approach

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Evaluating the impact of firm subsidy using a multilevel propensity score approach

Author Info

Gadd, Håkan (Swedish Institute for Growth Policy Studies (ITPS))
Hansson, Gustav (Swedish Insitute for Growth Policy Studies (ITPS))
Månsson, Jonas () (Centre for Labour Market Policy Research (CAFO))

Additional information is available for the following registered author(s):

Gustav Hansson

Abstract

In this paper, we investigate if firms who received the Regional Development Grant are performing better than firms that did not receive the subsidy. Using data on Swedish stock companies, we firstly estimate a multilevel logit model of the probability of receiving the subsidy. The multilevel approach enables us to adequately take into account the regional context. Secondly, we use propensity score matching to assess the successfulness of the subsidy. The results show that firm characteristics and regional context matters for the probability of receiving the subsidy. Subsidized firms increased their firm size compared to non-subsidized firms’, however; we find no evidence that the subsidized firms have any higher profitability.

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Publisher Info
Paper provided by Centre for Labour Market Policy Research (CAFO), School of Management and Economics, Växjö University in its series CAFO Working Papers with number 2009:3.

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Length: 25 pages
Date of creation: 20 Jul 2008
Date of revision:
Handle: RePEc:hhs:vxcafo:2009_003

Note: Corresponding Author: Associate Professor Jonas Månsson, jonas.mansson@vxu.se
Contact details of provider:
Postal: Centre for Labour Market Policy Research (CAFO), Dept of Economics and Statistics, School of Management and Economics, Växjö University, SE 351 95 Växjö, Sweden
Phone: +46 470 70 87 64
Web page: http://www.vxu.se/ehv/english/research/research_fields/cafo/
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Find related papers by JEL classification:
C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-03-07 (All new papers)
NEP-DCM-2009-03-07 (Discrete Choice Models)
NEP-LAB-2009-03-07 (Labour Economics)

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This page was last updated on 2009-11-30.

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