Assessing the effect of the amount of financial aids to Piedmont firms using the generalized propensity score

Michela Bia () and Alessandra Mattei

Statistical Methods & Applications, 2012, vol. 21, issue 4, 485-516

Abstract: Regional and national development policies play an important role to support local enterprises in Italy. The amount of financial aid may be a key feature for firms’ employment policies. We study the impact on employment of the amount of financial aid attributed to enterprises located in Piedmont, a region in northern Italy, analysing small-sized firms and medium- or large-sized firms separately. We apply generalized propensity score methods under the unconfoundedness assumption that adjusting for differences in a set of observed pre-treatment variables removes all biases in comparisons by different amounts of financial aid. We find that the estimated effects are increasing with amount of financial aid for both small-sized and medium- or large-sized firms, whereas the marginal effects of additional incentives are decreasing with amount of financial aid for small-sized firms, and have an inverse J-shape for medium- or large-sized firms. Copyright Springer-Verlag 2012

Keywords: Continuous treatment; Dose-response function; Financialaid to firms; Generalized propensity score; Non-experimental methods; Policy evaluation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (30)

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DOI: 10.1007/s10260-012-0193-4

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