Identifying the effects of place-based policies – Evidence from Germany

Mirko Titze, Eva Dettmann and Matthias Brachert ()

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: The German government provides discretionary investment grants to structural weak regions to allow them to overcome disadvantages. The legislatives of the European Union (EU) however restrict the number of supported regions: The share of population in assisted regions is not allowed to exceed an arbitrarily defined threshold. We use a regression-discontinuity design that exploits a discrete jump in the probability to receive investment grants. Thus, we identify causal effects of the investment grant treatment on area level economic outcomes. We find positive effects for regional gross value added and productivity growth but no effects for employment and gross wages growth.

JEL-codes: A11 D61 Z00 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145735

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