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Do micro-enterprises ask for local support measures? Evidence after the COVID-19 pandemic

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  • Alessio Tomelleri
  • Anna Gloria Billé

Abstract

Government subsidies have been one of the main policy instruments used to deal with the economic effects of the COVID-19 pandemic. This study investigated the impact of spatial dependence on the take-up rate of local government subsidies in 2020. It focused on a specific sub-population of firms hit particularly hard by the pandemic: micro-enterprises. Since microdata on this type of firm is rare, we focused on a representative survey of local firms in Trentino, a province in the north of Italy. The sample is linked with administrative balance sheet data up to 2019, providing a wide range of covariates to control for the characteristics of eligible enterprises that did and did not apply for COVID-19 aid. The methodology focused on using a spatial probit model that properly provides local direct, indirect and total marginal effects to investigate the spatial heterogeneity of revenues with respect to the probability of receiving a provincial subsidy.

Suggested Citation

  • Alessio Tomelleri & Anna Gloria Billé, 2023. "Do micro-enterprises ask for local support measures? Evidence after the COVID-19 pandemic," FBK-IRVAPP Working Papers 2023-04, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    • Handle: RePEc:fbk:wpaper:2023-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Public Subsidies; Take-up; Micro-enterprise; Spatial probit; Spatial dependence; COVID-19;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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