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Assessing the effect of the amount of financial aids to Piedmont firms using the generalized propensity score

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  • Michela Bia

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  • Alessandra Mattei

Abstract

Regional and national development policies play an important role to support local enterprises in Italy. The amount of financial aid may be a key feature for firms’ employment policies. We study the impact on employment of the amount of financial aid attributed to enterprises located in Piedmont, a region in northern Italy, analysing small-sized firms and medium- or large-sized firms separately. We apply generalized propensity score methods under the unconfoundedness assumption that adjusting for differences in a set of observed pre-treatment variables removes all biases in comparisons by different amounts of financial aid. We find that the estimated effects are increasing with amount of financial aid for both small-sized and medium- or large-sized firms, whereas the marginal effects of additional incentives are decreasing with amount of financial aid for small-sized firms, and have an inverse J-shape for medium- or large-sized firms. Copyright Springer-Verlag 2012

Suggested Citation

  • Michela Bia & Alessandra Mattei, 2012. "Assessing the effect of the amount of financial aids to Piedmont firms using the generalized propensity score," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 21(4), pages 485-516, November.
  • Handle: RePEc:spr:stmapp:v:21:y:2012:i:4:p:485-516
    DOI: 10.1007/s10260-012-0193-4
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Esposti, Roberto, 2014. "The Impact of the 2005 CAP-First Pillar Reform as a Multivalued Treatment Effect -Alternative Estimation Approaches," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173005, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Konstantins Benkovskis & Olegs Tkacevs & Naomitsu Yashiro, 2018. "Importance of EU Regional Support Programmes for Firm Performance," Working Papers 2018/01, Latvijas Banka.
    3. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    4. Konstantinos Chatzimichael & Margarita Genius & Vangelis Tzouvelekas, 2017. "Health-Damaging Inputs, Workers Health Status and Productivity Measurement," Working Papers 1701, University of Crete, Department of Economics.
    5. Konstantinos Chatzimichael & Margarita Genius & Vangelis Tzouvelekas, 2015. "Health-Damaging Inputs, Workers' Health Status and Productivity Measurement," Working Papers 1504, University of Crete, Department of Economics.
    6. repec:bap:journl:170407 is not listed on IDEAS
    7. repec:gam:jsusta:v:9:y:2017:i:12:p:2293-:d:122333 is not listed on IDEAS
    8. Arpino, Bruno & Mattei, Alessandra, 2013. "Assessing the Impact of Financial Aids to Firms: Causal Inference in the presence of Interference," MPRA Paper 51795, University Library of Munich, Germany.
    9. Stefaan Decramer & Stijn Vanormelingen, 2016. "The effectiveness of investment subsidies: evidence from a regression discontinuity design," Small Business Economics, Springer, vol. 47(4), pages 1007-1032, December.
    10. Chiara Bocci & Marco Mariani, 2015. "L’approccio delle funzioni dose-risposta per la valutazione di trattamenti continui nei sussidi alla r&s," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3 Suppl.), pages 81-102.
    11. Michela Bia & Carlos A. Flores & Alfonso Flores-Lagunes & Alessandra Mattei, 2014. "A Stata package for the application of semiparametric estimators of dose–response functions," Stata Journal, StataCorp LP, vol. 14(3), pages 580-604, September.
    12. Bartolini, Fabio & Brunori, Gianluca & Coli, Alessandra & Landi, Chiara & Pacini, Barbara, 2015. "Assessing the Causal Effect of Decoupled Payments on farm labour in Tuscany Using Propensity Score Methods," 2015 Conference, August 9-14, 2015, Milan, Italy 211200, International Association of Agricultural Economists.
    13. Mehdi Chowdhury & Dragana Radicic, 2018. "Remittances and asset accumulation in Bangladesh: A study using generalized propensity score," Discussion Papers 2018-05, University of Nottingham, CREDIT.
    14. Roberto ESPOSTI, 2014. "To match, not to match, how to match: Estimating the farm-level impact of the CAP-first pillar reform (or: How to Apply Treatment-Effect Econometrics when the Real World is;a Mess)," Working Papers 403, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    15. Konstantinos Chatzimichael & Margarita Genius & Vangelis Tzouvelekas, 2015. "Health-Damaging Inputs, Workers' Health Status and Productivity Measurement," Working Papers 1505, University of Crete, Department of Economics.

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