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An evaluation of the policies on repayment of Government’s trade debt in Italy

Author

Listed:
  • Leandro D’Aurizio

    (Bank of Italy)

  • Domenico Depalo

    (Bank of Italy)

Abstract

Since 2012 the Italian Government has taken several steps to repay its commercial debts. Using a composite dataset, we evaluate the effects of these policies on the financial performance of a representative sample of Italian firms. We distinguish between the firms that were beneficiaries of these repayments, those that were not repaid, though they had a legitimate claim, and those that had no commercial ties with the general government. We find that receiving money had a significant positive impact on firms’ financial position.

Suggested Citation

  • Leandro D’Aurizio & Domenico Depalo, 2016. "An evaluation of the policies on repayment of Government’s trade debt in Italy," Temi di discussione (Economic working papers) 1061, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1061_16
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    References listed on IDEAS

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    Cited by:

    1. Maurizio Conti & Leandro Elia & Antonella Rita Ferrara & Massimiliano Ferraresi, 2020. "Government late payments and firms survival. Evidence from the EU," Working papers 87, Società Italiana di Economia Pubblica.
    2. Margherita Bottero & Stefano schiaffi, 2022. "Firm liquidity and the transmission of monetary policy," Temi di discussione (Economic working papers) 1378, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    trade debt; difference-in-differences; policy evaluation;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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