Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331700 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18136
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We estimate the causal effect of APOIAR, a targeted COVID-19 support initiative, on firm survival and performance. Using sharp and fuzzy regression discontinuity designs and three administrative datasets, we find that eligible firms experienced a short-term profitability increase in 2021, with €1 of support raising net income by €0.658. These effects did not persist into 2022, and we observe no significant changes in turnover or cost reduction, suggesting the profitability gains were mechanically driven by the subsidy. The funds were particularly used by ex-ante less productive, more indebted firms with limited liquidity
Subjects: 
grants
small private firms
times of crisis
COVID-19
JEL: 
H25
H32
D22
L20
Document Type: 
Working Paper

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