Public Incentives for Firms: Micro-Level Evidence

29 Pages Posted: 27 Oct 2010

Date Written: January 21, 2010

Abstract

This paper provides a statistical overview of the extent and composition of publicly-funded loans granted by banks to Italian firms. The analysis is based on the universe of reports to the Central Credit Register (CR). Between 1998 and 2007 the subsidized loans recorded by the CR amounted to about 0.3 per cent of GDP and involved approximately 27,000 firms, mainly limited companies. Our results confirm that publicly-subsidized loans are the most common type of subsidy in the Centre and North, while in the South non-returnable grants have traditionally been more predominant. Among the regions of the Centre and North, subsidies of this kind figure most prominently in Friuli Venezia Giulia, Veneto, and Trentino Alto Adige. The share of subsidized lending is greater among larger enterprises, especially agricultural firms and in industry excluding construction.

Note: Downloadable document is in Italian.

Keywords: firms, financial subsidies

JEL Classification: G2, H2, R0

Suggested Citation

Caprara, Diego and Carmignani, Amanda and D'Ignazio, Alessio, Public Incentives for Firms: Micro-Level Evidence (January 21, 2010). Bank of Italy Occasional Paper No. 60, Available at SSRN: https://ssrn.com/abstract=1698041 or http://dx.doi.org/10.2139/ssrn.1698041

Diego Caprara

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Amanda Carmignani (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Alessio D'Ignazio

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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