Firm-level policy support during the crisis: So far, so good?

Péter Harasztosi, Laurent Maurin, Rozália Pál, Debora Revoltella and Wouter van der Wielen

International Economics, 2022, vol. 171, issue C, 30-48

Abstract: We use the 2021 vintage of the EIB Investment Survey (EIBIS) which contains a detailed set of questions regarding the nature of the policy support to firms during the COVID-19 crisis. Matched with hard data on the balance sheets and Profit and Loss (P&L) statements of corporations, the survey enables to disentangle the drivers of policy allotment and the impact of the policy support during the investment recovery. First, we focus on the distribution of the policy support and show that it has been allotted mostly owing to the sales losses during the crisis, going to firms most affected during the crisis. We do not find evidence that the support was tilted towards firms already weak before the crisis. Second, we show that the firms that have benefitted from the policy support tend to be more optimistic regarding their investment plans. The impact is especially pronounced for investment in digital technologies.

Keywords: COVID-19; Policy support; Investment; Firm-level evidence; Economic rebound (search for similar items in EconPapers)
JEL-codes: D22 E22 H0 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Journal Article: Firm-level policy support during the crisis: So far, so good? (2022)
Working Paper: Firm-level policy support during the crisis: So far, so good? (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:171:y:2022:i:c:p:30-48

DOI: 10.1016/j.inteco.2022.04.003

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