IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18136.html
   My bibliography  Save this paper

Sailing Through Troubled Waters: Evidence from Support Discontinuities to Firms in Times of Crisis

Author

Listed:
  • Martins, Ana

    (Technical University of Lisbon)

  • Pereira dos Santos, João

    (ISEG)

  • Pozzobon, Fernando

    (Universidade Técnica de Lisboa)

Abstract

We estimate the causal effect of APOIAR, a targeted COVID-19 support initiative, on firm survival and performance. Using sharp and fuzzy regression discontinuity designs and three administrative datasets, we find that eligible firms experienced a short-term profitability increase in 2021, with €1 of support raising net income by €0.658. These effects did not persist into 2022, and we observe no significant changes in turnover or cost reduction, suggesting the profitability gains were mechanically driven by the subsidy. The funds were particularly used by ex-ante less productive, more indebted firms with limited liquidity

Suggested Citation

  • Martins, Ana & Pereira dos Santos, João & Pozzobon, Fernando, 2025. "Sailing Through Troubled Waters: Evidence from Support Discontinuities to Firms in Times of Crisis," IZA Discussion Papers 18136, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18136
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18136.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp18136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.