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

Alessio Tomelleri and Anna Gloria Billé

No 2023-04, FBK-IRVAPP Working Papers from Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation

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.

Keywords: Public Subsidies; Take-up; Micro-enterprise; Spatial probit; Spatial dependence; COVID-19 (search for similar items in EconPapers)
JEL-codes: D22 D25 H25 H71 L20 L25 (search for similar items in EconPapers)
Date: 2023-07
New Economics Papers: this item is included in nep-ent, nep-sbm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:fbk:wpaper:2023-04

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