Some Causal Effects of an Industrial Policy

• 成果类型: Article
• 署名作者: Criscuolo, Chiara; Martin, Ralf; Overman, Henry G.; Van Reenen, John
• 署名单位: Organisation for Economic Co-operation & Development (OECD); Imperial College London; University of London; London School Economics & Political Science; Massachusetts Institute of Technology (MIT)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20160034
• 发表日期: 2019
• 页码: 48-85
• 关键词: research-and-development; regression discontinuity design; local economic-development; DEVELOPMENT SUBSIDIES; REGIONAL GRANTS; level evidence; INVESTMENT; GROWTH; tax; INNOVATION

摘要

We exploit changes in the area-specific eligibility criteria for a program to support jobs through investment subsidies. European rules determine whether an area is eligible for subsidies, and we construct instrumental variables for area eligibility based on parameters of these rule changes. Areas eligible for higher subsidies significantly increased jobs and reduced unemployment. A 10-percentage point increase in the maximum investment subsidy stimulates a 10 percent increase in manufacturing employment. This effect exists solely for small firms: large companies accept subsidies without increasing activity. There are positive effects on investment and employment for incumbent firms but not Total Factor Productivity.