A propensity score analysis of public incentives: The Italian case
AbstractPublic support to firms has been a traditional and important industrial policy measure in many countries for several decades. One of the reasons for public intervention is the existence of market failures or imperfections. Informational asymmetries between borrowers and lenders of funds in particular are used to justify subsidies to firms, especially small and medium-sized enterprises. Within this framework, the main purpose of public subsidies is offsetting market imperfections. This paper makes a contribution to current empirical literature by examining the effects of public funding on credit rationing of small and medium-sized Italian firms. The results suggest that public subsidies reduce the probability of a firm being credit rationing
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36698.
Date of creation: 2011
Date of revision:
Publication status: Published in Risk Governance and Control: financial markets and institutions 1.1(2011): pp. 85-89
Propensity score; Credit rationing; Public subsidies;
Find related papers by JEL classification:
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
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