Are the subsidies to private capital useful? A Multiple Regression Discontinuity Design Approach1
AbstractThere is still little consensus on the effectiveness of business support policies. The empirical evaluation is complicated by the difficulty in achieving reliable identification. We analyse the impact of Law 488/92, the main Italian regional policy. We propose a new approach, named multiple regression discontinuity design that exploits the sharp discontinuities in the L488 rankings and extends the RDD approach to a context where the treatment is assigned by multiple rankings with different cut-off points. We find that the impact of L488 on investment and production of the financed firms is positive and statistically significant.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1323.
Date of creation: Sep 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-14 (All new papers)
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