How much does state aid mitigate employment losses? Local policy effects at a time of economic crisis

REFERENCES

• Agency for Territorial Cohesion. (2017). Relazione annuale CPT 2017. Politiche nazionali e politiche di sviluppo nei Conti Pubblici Territoriali, Temi CPT No. 4.
   Google Scholar
• Albanese, G., Blasio, G., & Locatelli, A. (2020). Does EU regional policy promote local TFP growth? Evidence from the Italian Mezzogiorno. Papers in Regional Science, 100(2), 327–348. https://doi.org/10.1111/pirs.12574
   Web of Science ®Google Scholar
• Alvaredo, F., Chancel, L., Piketty, T., Saez, E., & Zucman, G. (2018). World inequality report. http://wir2018.wid.world/files/download/wir2018-summary-english.pdf
   Google Scholar
• Andini, M., & de Blasio, G. (2016). Local development that money cannot buy: Italy’s Contratti di Programma. Journal of Economic Geography, 16(2), 365–393. https://doi.org/10.1093/jeg/lbu048
   Web of Science ®Google Scholar
• Arbolino, R., Di Caro, P., & Marani, U. (2020). Did the governance of EU funds help Italian regional labour markets during the Great Recession? JCMS: Journal of Common Market Studies, 58(2), 235–255. https://doi.org/10.1111/jcms.12900
   Web of Science ®Google Scholar
• Austin, B. A., Glaeser, E. L., & Summers, L. H. (2018). Jobs for the heartland: Place-based policies in 21st-century America. Brookings Papers on Economic Activity, 2018(1), 151–255. https://doi.org/10.1353/eca.2018.0002
   Google Scholar
• Bachtler, J., Oliveira Martins, J., Wostner, P., & Zuber, P. (2017). Towards Cohesion Policy 4.0: Structural transformation and inclusive growth. Regional Studies Association Europe.
   Google Scholar
• Bachtrögler, J. (2016). On the effectiveness of EU Structural Funds during the Great Recession: Estimates from a heterogeneous local average treatment effects framework. Working Paper Series No. 230. Department of Economics, WU Vienna University of Economics and Business.
   Google Scholar
• Bachtrögler, J., Fratesi, U., & Perucca, G. (2020). The influence of the local context on the implementation and impact of EU Cohesion Policy. Regional Studies, 54(1), 21–34. https://doi.org/10.1080/00343404.2018.1551615
   Web of Science ®Google Scholar
• Barca, F. (2009). An agenda for the reformed Cohesion Policy. Report to the Commissioner for Regional Policy. Brussels.
   Google Scholar
• Bartik, T. J. (2019). Should place-based jobs policies be used to help distressed communities? Working Paper No. 19-308. W. E. Upjohn Institute for Employment Research.
   Google Scholar
• Becker, S. O., Egger, P. H., & von Ehrlich, M. (2010). Going NUTS: The effect of EU Structural Funds on regional performance. Journal of Public Economics, 94(9–10), 578–590. https://doi.org/10.1016/j.jpubeco.2010.06.006
   Web of Science ®Google Scholar
• Becker, S. O., Egger, P. H., & von Ehrlich, M. (2013). Absorptive capacity and the growth and investment effects of regional transfers: A regression discontinuity design with heterogeneous treatment effects. American Economic Journal: Economic Policy, 5(4), 29–77. https://doi.org/10.1257/pol.5.4.29
   Web of Science ®Google Scholar
• Becker, S. O., Egger, P. H., & von Ehrlich, M. (2018). Effects of EU regional policy: 1989–2013. Regional Science and Urban Economics, 69(C), 143–152. https://doi.org/10.1016/j.regsciurbeco.2017.12.001
   Web of Science ®Google Scholar
• Benner, M. (2020). Six additional questions about smart specialization: implications for regional innovation policy 4.0. European Planning Studies, 28(8), 1667–1684. https://doi.org/10.1080/09654313.2020.1764506
   Web of Science ®Google Scholar
• Bentley, G., & Pugalis, L. (2014). Shifting paradigms: People-centred models, active regional development, space-blind policies and place-based approaches. Local Economy: The Journal of the Local Economy Policy Unit, 29(4–5), 283–294. https://doi.org/10.1177/0269094214541355
   Google Scholar
• Blouri, Y., & von Ehrlich, M. (2020). On the optimal design of place-based policies: A structural evaluation of EU regional transfers. Journal of International Economics, 125, 1–33. https://doi.org/10.1016/j.jinteco.2020.103319
   Web of Science ®Google Scholar
• Bondonio, D., & Greenbaum, R. T. (2014). Revitalizing regional economies through enterprise support policies: An impact evaluation of multiple instruments. European Urban and Regional Studies, 21(1), 79–103. https://doi.org/10.1177/0969776411432986
   Web of Science ®Google Scholar
• Busso, M., Gregory, J., & Kline, P. (2013). Assessing the incidence and efficiency of a prominent place based policy. American Economic Review, 103(2), 897–947. https://doi.org/10.1257/aer.103.2.897
   Web of Science ®Google Scholar
• Capello, R., & Kroll, H. (2016). From theory to practice in smart specialization strategy: Emerging limits and possible future trajectories. European Planning Studies, 24(8), 1393–1406. https://doi.org/10.1080/09654313.2016.1156058
   Web of Science ®Google Scholar
• Cappelen, A., Castellacci, F., Fagerberg, J., & Verspagen, B. (2003). The impact of EU regional support on growth and convergence in the European Union. JCMS: Journal of Common Market Studies, 41(4), 621–644. https://doi.org/10.1111/1468-5965.00438
   Web of Science ®Google Scholar
• Cerqua, A., & Pellegrini, G. (2014). Do subsidies to private capital boost firms’ growth? A multiple regression discontinuity design approach. Journal of Public Economics, 109, 114–126. https://doi.org/10.1016/j.jpubeco.2013.11.005
   Web of Science ®Google Scholar
• Cerqua, A., & Pellegrini, G. (2018). Are we spending too much to grow? The case of Structural Funds. Journal of Regional Science, 58(3), 535–563. https://doi.org/10.1111/jors.12365
   Web of Science ®Google Scholar
• Cerqua, A., & Pellegrini, G. (2020). Local multipliers at work. Industrial and Corporate Change, 29(4), 959–977. https://doi.org/10.1093/icc/dtaa004
   Web of Science ®Google Scholar
• Ciani, E., & de Blasio, G. (2015). European Structural Funds during the crisis: Evidence from Southern Italy. IZA Journal of Labor Policy, 4(1), 20. https://doi.org/10.1186/s40173-015-0047-4
   Google Scholar
• Consalvi, M., Costanzo, L., & Filipponi, D. (2008, October). Evolution of census statistics on enterprises in Italy 1996-2006: From the traditional census to a register of local units. In IAOS Conference on Reshaping Official Statistics, Shanghai (pp. 14–16).
   Google Scholar
• Crescenzi, R., Luca, D., & Milio, S. (2016). The geography of the economic crisis in Europe: National macroeconomic conditions, regional structural factors and short-term economic performance. Cambridge Journal of Regions, Economy and Society, 9(1), 13–32. https://doi.org/10.1093/cjres/rsv031
   Web of Science ®Google Scholar
• Criscuolo, C., Martin, R., Overman, H., & Van Reenen, J. (2019). Some causal effects of an industrial policy. American Economic Review, 109(1), 48–85. https://doi.org/10.1257/aer.20160034
   Web of Science ®Google Scholar
• Dall’Erba, S., & Fang, F. (2017). Meta-analysis of the impact of European Union Structural Funds on regional growth. Regional Studies, 51(6), 822–832. https://doi.org/10.1080/00343404.2015.1100285
   Web of Science ®Google Scholar
• Dall’Erba, S., & Le Gallo, J. (2008). Regional convergence and the impact of European Structural Funds 1989–1999: A spatial econometric analysis. Papers in Regional Science, 87(2), 219–244. https://doi.org/10.1111/j.1435-5957.2008.00184.x
   Web of Science ®Google Scholar
• Dell, M. (2010). The persistent effects of Peru’s mining mita. Econometrica, 78(6), 1863–1903. https://doi.org/10.3982/ECTA8121
   Web of Science ®Google Scholar
• Di Cataldo, M. (2017). The impact of EU objective 1 funds on regional development: Evidence from the U.K. and the prospect of Brexit. Journal of Regional Science, 57(5), 814–839. https://doi.org/10.1111/jors.12337
   Web of Science ®Google Scholar
• Einiö, E., & Overman, H. G. (2020). The effects of supporting local business: Evidence from the UK. Regional Science and Urban Economics, 83, 103500. https://doi.org/10.1016/j.regsciurbeco.2019.103500
   Web of Science ®Google Scholar
• European Policies Research Centre (EPRC). (2009). Regional policy under crisis conditions: Recent regional policy developments in the EU and Norway. European Policy Research Papers No. 09/2. EPRC, University of Strathclyde.
   Google Scholar
• European Policies Research Centre (EPRC). (2010a). Regional policy and recovery from the economic crisis. European Policy Research Papers No. 10/1. EPRC, University of Strathclyde.
   Google Scholar
• European Policies Research Centre (EPRC). (2010b). Complementarity or conflict? The (in)coherence of Cohesion Policy. European Policy Research Papers No. 10/6. EPRC, University of Strathclyde.
   Google Scholar
• European Commission. (2006). Guidelines on national regional aid for 2007–2013. Official Journal of the European Union (2006/C 54/08), 13–44.
   Google Scholar
• European Commission. (2007). Cohesion Policy 2007–13: Commentaries and official texts. Office for Official Publications of the European Communities.
   Google Scholar
• European Commission. (2016a). WP1: Synthesis report. Ex post evaluation of Cohesion Policy programmes 2007–2013, focusing on the European Regional Development Fund (ERDF) and the Cohesion Fund (CF). Directorate General for Regional and Urban Policy.
   Google Scholar
• European Commission. (2016b). WP1: Synthesis report. Task 3 Country Report: Italy, Ex-post evaluation of Cohesion Policy programmes 2007–2013. Directorate General for Regional and Urban Policy.
   Google Scholar
• Fajgelbaum, P. D., & Gaubert, C. (2020). Optimal spatial policies, geography, and sorting. The Quarterly Journal of Economics, 135(2), 959–1036. https://doi.org/10.1093/qje/qjaa001
   Web of Science ®Google Scholar
• Fajgelbaum, P. D., Schaal, E., & Taschereau-Dumouchel, M. (2017). Uncertainty traps. The Quarterly Journal of Economics, 132(4), 1641–1692. https://doi.org/10.1093/qje/qjx021
   Web of Science ®Google Scholar
• Filippetti, A., Guy, F., & Iammarino, S. (2019). Regional disparities in the effect of training on employment. Regional Studies, 53(2), 217–230. https://doi.org/10.1080/00343404.2018.1455177
   Web of Science ®Google Scholar
• Freedman, M. (2015). Place-based programs and the geographic dispersion of employment. Regional Science and Urban Economics, 53, 1–19. https://doi.org/10.1016/j.regsciurbeco.2015.04.002
   Web of Science ®Google Scholar
• Frölich, M., & Huber, M. (2019). Including covariates in the regression discontinuity design. Journal of Business & Economic Statistics, 37(4), 736–748. https://doi.org/10.1080/07350015.2017.1421544
   Web of Science ®Google Scholar
• Giua, M. (2017). Spatial discontinuity for the impact assessment of the EU regional policy. Journal of Regional Science, 57(1), 109–131. https://doi.org/10.1111/jors.12300
   Web of Science ®Google Scholar
• Glaeser, E. (2008). Cities, agglomeration, and spatial equilibrium. Oxford University Press.
   Google Scholar
• Glaeser, E., & Gottlieb, J. D. (2008). The economics of place-making policies. Brookings Papers on Economic Activity, 155–253. https://doi.org/10.1353/eca.0.0005
   Web of Science ®Google Scholar
• Gordon, T. (2018). Harnessing the U.S. intergovernmental grant system for place-based assistance in recession and recovery. In J. Shambaugh, & R. Nunn (Eds.), Place-based policies for shared economic growth (pp. 123–156). Brookings.
   Google Scholar
• Hagedorn, M., Karahan, F., Manovskii, I., & Mitman, K. (2015). Unemployment benefits and unemployment in the Great Recession: The role of macro effects. Staff Reports. Federal Reserve Bank of New York.
   Google Scholar
• Hassink, R., & Gong, H. (2019). Six critical questions about smart specialization. European Planning Studies, 27(10), 2049–2065. https://doi.org/10.1080/09654313.2019.1650898
   Web of Science ®Google Scholar
• Iammarino, S., Rodríguez-Pose, A., & Storper, M. (2019). Regional inequality in Europe: Evidence, theory and policy implications. Journal of Economic Geography, 19(2), 273–298. https://doi.org/10.1093/jeg/lby021
   Web of Science ®Google Scholar
• Iuzzolino, G., Pellegrini, G., & Viesti, G. (2013). Regional convergence. In G. Toniolo (Ed.), The Oxford handbook of the Italian economy since unification (pp. 712–735). Oxford University Press.
   Google Scholar
• Jofre-Monseny, J. (2014). The effects of unemployment protection on migration in lagging regions. Journal of Urban Economics, 83, 73–86. https://doi.org/10.1016/j.jue.2014.08.001
   Web of Science ®Google Scholar
• Keele, L., Lorch, S., Passarella, M., Small, D., & Titiunik, R. (2017). An overview of geographically discontinuous treatment assignments with an application to children’s health insurance. In M. D. Cattaneo, & J. C. Escanciano (Eds.), Regression discontinuity designs (Advances in econometrics, volume 38) (pp. 147–194). Emerald.
   Google Scholar
• Keele, L., & Titiunik, R. (2015). Geographic boundaries as regression discontinuities. Political Analysis, 23(1), 127–155. https://doi.org/10.1093/pan/mpu014
   Web of Science ®Google Scholar
• Kline, P., & Moretti, E. (2014a). Local economic development, agglomeration economies and the Big Push: 100 years of evidence from the Tennessee Valley Authority. The Quarterly Journal of Economics, 129(1), 275–331. https://doi.org/10.1093/qje/qjt034
   Web of Science ®Google Scholar
• Kline, P., & Moretti, E. (2014b). People, places and public policy: Some simple welfare economics of local economic development programs. Annual Review of Economics, 6(1), 629–662. https://doi.org/10.1146/annurev-economics-080213-041024
   Web of Science ®Google Scholar
• Lagravinese, R., Liberati, P., & Sacchi, A. (2018). The growth and variability of regional taxes: An application to Italy. Regional Studies, 52(3), 416–429. https://doi.org/10.1080/00343404.2017.1313400
   Web of Science ®Google Scholar
• Lee, D. S., & Lemieux, T. (2010). Regression discontinuity designs in economics. Journal of Economic Literature, 48(2), 281–355. https://doi.org/10.1257/jel.48.2.281
   Web of Science ®Google Scholar
• Moretti, E. (2010). Local multipliers. American Economic Review, 100(2), 373–377. https://doi.org/10.1257/aer.100.2.373
   Web of Science ®Google Scholar
• Moretti, E. (2011). Local labor markets. In O. Ashelfelter, & D. Card (Eds.), Handbook of labor Economics (Vol. 4, pp. 1237–1313). Elsevier.
   Google Scholar
• Neumark, D., & Simpson, H. (2015). Place-based policies. In G. Duranton, J. V. Henderson, & W. Strange (Eds.), Handbook of urban and regional Economics (Vol. 5, pp. 1197–1287). Elsevier.
   Google Scholar
• Pellegrini, G., Terribile, F., Tarola, O., Muccigrosso, T., & Busillo, F. (2013). Measuring the effects of European regional policy on economic growth: A regression discontinuity approach. Papers in Regional Science, 92(1), 217–233. https://doi.org/10.1111/j.1435-5957.2012.00459.x
   Web of Science ®Google Scholar
• Pike, A., Rodríguez-Pose, A., & Tomaney, J. (2016). Local and regional development (2nd ed.). Routledge.
   Google Scholar
• Polverari, L. (2013). Policy rhetoric versus political reality: Has the Italian state given up on the Mezzogiorno? Regional & Federal Studies, 23(5), 571–590. https://doi.org/10.1080/13597566.2013.801842
   Google Scholar
• Rodríguez-Pose, A., & Fratesi, U. (2004). Between development and social policies: The impact of European Structural Funds in Objective 1 regions. Regional Studies, 38(1), 97–113. https://doi.org/10.1080/00343400310001632226
   Web of Science ®Google Scholar
• Rodríguez-Pose, A., & Garcilazo, E. (2015). Quality of government and the returns of investment: Examining the impact of cohesion expenditure in European regions. Regional Studies, 49(8), 1274–1290. https://doi.org/10.1080/00343404.2015.1007933
   Web of Science ®Google Scholar
• Stock, J. H., & Yogo, M. (2005). Testing for weak instruments in linear IV regression. In D. W. K. Andrews, & J. H. Stock (Eds.), Identification and inference for econometric models: Essays in honor of Thomas Rothenberg (pp. 80–108). Cambridge University Press.
   Google Scholar
• von Ehrlich, M., & Seidel, T. (2018). The persistent effects of place-based policy: Evidence from the West-German Zonenrandgebiet. American Economic Journal: Economic Policy, 10(4), 344–374. https://doi.org/10.1257/pol.20160395
   Web of Science ®Google Scholar