Abstract
We estimate the causal impact of restructuring aid granted by the European Commission between 2000 and 2012 on the survival and financial viability of aided firms. Using a comprehensive dataset we find that restructuring aid decreases the hazard rate of a market exit by 58–68% and increases firms’ average survival time by 8–15 years, depending on the definition of firm survival. We also find that aid receiving firms have a significantly higher probability to improve their financial viability than the counterfactual group in the longer run.
| Original language | English |
|---|---|
| Pages (from-to) | 193-214 |
| Number of pages | 22 |
| Journal | European Economic Review |
| Volume | 100 |
| DOIs | |
| Publication status | Published - Nov 2017 |
Austrian Fields of Science 2012
- 502046 Economic policy
- 502010 Public finance
- 502039 Structural policy
Keywords
- CMI
- Cat2
- VWL
- public policy
- State aid
- Ex-post evaluation
- EU
- Survival analysis
- Public policy
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