Do subsidized new firms survive longer? Evidence from a counterfactual approach

Guido Pellegrini and Teo Muccigrosso

Regional Studies, 2017, vol. 51, issue 10, 1483-1493

Abstract: Do subsidized new firms survive longer? Evidence from a counterfactual approach. Regional Studies. This study provides a statistically robust evaluation of the impact of capital subsidies on the survival of start-ups in Italy. The analysis considers the subsidies provided by the main Italian regional policy, Law 488/1992, during 1996–2009. By exploiting an unusual characteristic of the L. 488 selection process, a quasi-experimental design with high internal validity – the regression discontinuity design – is applied for the first time to the survival analysis. The results show a lower default risk in subsidized start-ups. These findings contradict the view that start-ups receiving L. 488 assistance simply used the grant funding to delay exit.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://hdl.handle.net/10.1080/00343404.2016.1190814 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:regstd:v:51:y:2017:i:10:p:1483-1493

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CRES20

DOI: 10.1080/00343404.2016.1190814

Access Statistics for this article

Regional Studies is currently edited by Ivan Turok

More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().