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Study on methods to analyse the impact of state aid on competition

  • Rainer Nitsche
  • Paul Heidhues

One of the potential benefits of an economic approach to State aid control is to make relationships between the costs and the benefits of State aid more transparent and, by doing so, to provide guidance on how to focus State aid control efforts on those areas where the damage of State aid is the greatest. Where markets fail to deliver efficient outcomes, Government intervention, including the provision of State aid, can improve welfare. This is an accepted result in the economic literature. Many national or supra-national bodies do not provide a mechanism to monitor and discipline the State aid provided by its members. Indeed, the control of State aid in the European Union stands out.

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File URL: http://ec.europa.eu/economy_finance/publications/publication804_en.pdf
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Paper provided by Directorate General Economic and Financial Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 244.

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Length: 190 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:euf:ecopap:0244
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