This paper evaluates the impact of subsidies on the different components of TFP for granted firms’ long-term growth. The impact of capital subsidies is captured by a quasi–experimental method (Multiple RDD), exploiting the conditions for a local random experiment created by an Italian industrial policy. Results show that capital subsidies negatively affect TFP growth in the short term, and signals of positive effects appear only after 3–4 years. This positive medium-long term impact comes especially through technological change and not through scale impact change, as may have been expected.

Public subsidies, TFP and efficiency: A tale of complex relationships / Bernini, Cristina; Cerqua, Augusto; Pellegrini, Guido. - In: RESEARCH POLICY. - ISSN 0048-7333. - 46:4(2017), pp. 751-767. [10.1016/j.respol.2017.02.001]

Public subsidies, TFP and efficiency: A tale of complex relationships

BERNINI, CRISTINA;CERQUA, AUGUSTO;PELLEGRINI, Guido
2017

Abstract

This paper evaluates the impact of subsidies on the different components of TFP for granted firms’ long-term growth. The impact of capital subsidies is captured by a quasi–experimental method (Multiple RDD), exploiting the conditions for a local random experiment created by an Italian industrial policy. Results show that capital subsidies negatively affect TFP growth in the short term, and signals of positive effects appear only after 3–4 years. This positive medium-long term impact comes especially through technological change and not through scale impact change, as may have been expected.
2017
Policy evaluation; Public subsidies; Regression discontinuity design; Stochastic frontier model; TFP decomposition; Engineering (all); Strategy and Management1409 Tourism, Leisure and Hospitality Management; Management Science and Operations Research; Management of Technology and Innovation
01 Pubblicazione su rivista::01a Articolo in rivista
Public subsidies, TFP and efficiency: A tale of complex relationships / Bernini, Cristina; Cerqua, Augusto; Pellegrini, Guido. - In: RESEARCH POLICY. - ISSN 0048-7333. - 46:4(2017), pp. 751-767. [10.1016/j.respol.2017.02.001]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/955618
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