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

Cristina Bernini, Augusto Cerqua and Guido Pellegrini

Research Policy, 2017, vol. 46, issue 4, 751-767

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.

Keywords: Policy evaluation; Public subsidies; TFP decomposition; Stochastic frontier model; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: C14 H71 R38 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0048733317300240
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Public subsidies, TFP and efficiency: a tale of complex relationships (2015)
Working Paper: Public subsidies, TFP and Efficiency: a tale of complex relationships (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:46:y:2017:i:4:p:751-767

DOI: 10.1016/j.respol.2017.02.001

Access Statistics for this article

Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().