Local Authority Policies: The Case of Trentino (Le Politiche Promosse Dagli Enti Locali: Il Caso Del Trentino)

25 Pages Posted: 24 Jul 2012

See all articles by Roberto Gabriele

Roberto Gabriele

University of Trento - Department of Economics and Management; Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM)

Marco Zamarian

University of Trento; Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

Enrico Zaninotto

University of Trento - Department of Computer and Management Sciences (DISA)

Date Written: February 22, 2008

Abstract

Empirical literature findings do not provide a clear-cut interpretation of the effects of public aid on performances of firms. We contribute to this literature analysing the effects of public regional financial subsidies on investment using a unique dataset covering all the firms in the Italian province of Trentino with a record of public aid granted to them in the last 15 years. We find a temporary effect on investment level together with a permanent positive effects on size of firms, but no effect is found on factors substitution nor on technical change. Moreover, subsidies do not improve either profitability or productivity. These results help better define the scope of local aid.

Note: Downloadable document is in Italian.

Keywords: Regional policy, public subsidies, propensity score matching

JEL Classification: R11, R58, C31

Suggested Citation

Gabriele, Roberto and Zamarian, Marco and Zaninotto, Enrico, Local Authority Policies: The Case of Trentino (Le Politiche Promosse Dagli Enti Locali: Il Caso Del Trentino) (February 22, 2008). Available at SSRN: https://ssrn.com/abstract=2115558 or http://dx.doi.org/10.2139/ssrn.2115558

Roberto Gabriele (Contact Author)

University of Trento - Department of Economics and Management ( email )

Via Inama, 5
I-38122 Trento
Italy
+39-0461-282109 (Phone)
+39-0461-282124 (Fax)

Scuola Superiore Sant'Anna di Pisa - Laboratory of Economics and Management (LEM) ( email )

Piazza Martiri della Liberta, 33
Pisa, I-56127
Italy

Marco Zamarian

University of Trento ( email )

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Enrico Zaninotto

University of Trento - Department of Computer and Management Sciences (DISA) ( email )

Via Inama, 5
I-38100 Trento
Italy

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