Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/141878 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 5901
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The German government provides discretionary investment grants to structurally weak regions to reduce regional disparities. We use a regression discontinuity design that exploits an exogenous discrete jump in the probability of receiving investment grants, to identify the causal effects of the investment grant on regional outcomes. We find positive effects for regional gross value-added and productivity growth, but no effects for employment and gross wage growth.
Subjects: 
evaluation
industrial policy
regression discontinuity design
JEL: 
Z00
A11
D61
H20
Document Type: 
Working Paper
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