Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77021
Authors: 
Ragnitz, Joachim
Year of Publication: 
2003
Series/Report no.: 
IWH Discussion Papers 186
Abstract (Translated): 
Investment in East Germany is heavily subsidized. Econometric estimates based on a treatment approach show that the level of investment is significantly higher in firms being supported by state aid. Nevertheless, capital productivity is lower in East Germany, indicating a misallocation of capital. Additionally, there are negative effects in West Germany due to negative crowding-out effects. Therefore state aid in East Germany should be reduced in the medium run.
JEL: 
O52
R11
R38
R58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
225.75 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.