Erschienen in:University of Salerno Dipartimento di Scienze Economiche e Statistiche Working Paper ; No. 3.173
Umfang:
1 Online-Ressource (43 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1556430
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 21, 2005 erstellt
Beschreibung:
In this paper, we analyse the impact of business incentives on the technical efficiency of Italian manufacturing firms. Using DEA allows a novel treatment of the omitted-variable and sample-selection bias. Through DEA one carries out direct comparisons between similar observations akin to those carried out in non-parametric matching analysis. The selection bias can be treated by conditioning these comparisons on the variables ruling the distribution of state aid. We separately utilise four Capitalia surveys, in order to test whether policy effectiveness has changed during the 1990s. Moreover we consider separately the effects of the three main kinds of state aid to manufacturing (soft loans, grants, and tax rebates). The results indicate that state aid had a negative impact on technical efficiency. However, this impact mostly relates to soft loans, and looses significance in the late 1990s