The impact of government grants: employment up, productivity down
Overman, H. G.
(1 February 2012)
The impact of government grants: employment up, productivity down.
CEP Urban and Spatial Programme Blog.
(1 February 2012)
The impact of government grants: employment up, productivity down.
CEP Urban and Spatial Programme Blog.
[aka: 'Grants to large firms a waste of money'] The Great Recession has brought industrial policy back into fashion. Huge subsidies have been granted by governments around the world to private firms most dramatically in financial services, but also in other sectors like autos. Despite the ubiquity and cost of such schemes, rigorous evaluations of the causal effect of these “industrial policies” are rare.