TY  - RPRT
        AU  - Alexandre, Fernando
AU  - Chaves, Miguel
AU  - Portela, Miguel
        TI  - Investment Grants and Firms' Productivity: How Effective Is a Grant Booster Shot?
        PY  - 2022/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15779
        UR  - https://www.iza.org/index.php/publications/dp15779
        AB  - This paper investigates the effect of awarding a second investment grant to the same firm. We implement a Regression Discontinuity Design strategy using a very rich firm-level administrative database, which allows us to link applications to grants and their scores to firms' performance. Overall, our results show a positive and significant impact of an investment grant booster shot on firms' labour productivity. This effect is significantly larger than the effect of a single grant. A more granular analysis shows a strong impact of awarding a second grant to small-sized firms. However, we found no effect on micro, medium and large-sized firms. Our results suggest that the characteristics of the targeted firms, namely firm size, matter for the effectiveness of awarding a second grant to the same firm.
        KW  - industrial policy
KW  - investment grants
KW  - multiple treatments
KW  - productivity
        ER  -