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Who benefits from GRW? Heterogeneous effects of investment subsidies in Saxony Anhalt

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  • Dettmann, Eva
  • Weyh, Antje
  • Titze, Mirko

Abstract

We estimate causal employment effects of investment subsidies for treated firms as a whole as well as heterogeneous effects depending on firm characteristics and economic environment. We modify the standard matching and difference-in-difference approach by introducing a combined statistical distance function for matching and flexible durations for outcome differences. We find positive effects of the subsidies on the employment development. We also observe considerable effect heterogeneity.

Suggested Citation

  • Dettmann, Eva & Weyh, Antje & Titze, Mirko, 2017. "Who benefits from GRW? Heterogeneous effects of investment subsidies in Saxony Anhalt," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168158, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168158
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    Cited by:

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    2. Sven Wardenburg & Thomas Brenner, 2020. "How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1047-1073, November.
    3. Holtemöller, Oliver & Schult, Christoph, 2019. "Stellungnahme zum "Strukturstärkungsgesetz Kohleregionen" anlässlich der Anhörung im Ausschuss für Wirtschaft und Energie des Deutschen Bundestages am 15. Mai 2019," IWH Online 2/2019, Halle Institute for Economic Research (IWH).
    4. Brachert, Matthias & Giebler, Alexander & Heimpold, Gerhard & Titze, Mirko & Urban-Thielicke, Dana, 2018. "IWH-Subventionsdatenbank: Mikrodaten zu Programmen direkter Unternehmenssubventionen in Deutschland. Datendokumentation," IWH Technical Reports 2/2018, Halle Institute for Economic Research (IWH).
    5. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920.

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    JEL classification:

    • Z0 - Other Special Topics - - General
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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