|
on European Economics |
|
Issue of 2024‒08‒12
23 papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | Di Serio, Mario (CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy) |
| Abstract: | This study employs a Bayesian Interacted Panel VAR model to estimate time-varying Generalized Forecast Error Variance Decomposition, analyzing how key determinants affect debt in Core and Peripheral Euro Area countries. Results highlight varying effects of determinants across periods and subgroups. |
| Keywords: | Euro Area Public Debt; Public Debt Determinants; time-varying Generalized Forecast Error Variance Decomposition; Bayesian Interacted Panel VAR model |
| JEL: | C11 C30 H60 |
| Date: | 2024–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:sal:celpdp:0167&r= |
| By: | Joris Wauters (National Bank of Belgium); Zivile Zekaite (Central Bank of Ireland); Garo Garabedian (Central Bank of Ireland) |
| Abstract: | The ECB concluded its strategy review in 2021 with a plan to include owner-occupied housing (OOH) costs in its inflation measure in the future. This presentation uses the Bundesbank's online household panel to study how household expectations would react to this change. We conducted a survey experiment with different information treatments and compared long-run expectations for Euro-area overall in |
| Date: | 2024–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:boc:fsug24:11&r= |
| By: | Giulia Gotti; Francesco Papadia |
| Abstract: | This paper attempts to fill in the gaps in the European Central Bank's framework review |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bre:wpaper:node_10172&r= |
| By: | Kostas Mouratidis (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK); Georgios Papapanagiotou (Department of Economics, University of Macedonia, Greece); Christoph Thoenissen (Department of Economics, University of Sheffield, Sheffield S1 4DT, UK) |
| Abstract: | The level of productivity is an important macroeconomic indicator that informs monetary policy decisions. Since the 2008 financial crisis, UK productivity has plunged and remained below its pre-crisis level for more than a decade. Evidence that the European debt crisis was generated by a fall of productivity and subsequent current account deficit of South euro area countries raises challenging questions about the impact of productivity on the UK’s business cycle. We measure this impact by accounting for both permanent and transitory shocks to total factor productivity (TFP) and investment-specific technology (IST). Our results suggest that permanent positive TFP and IST shocks worsen the trade balance by increasing domestic absorption and appreciating the real exchange rate. However, the real exchange rate itself has no effect on net trade. In contrast, cyclical productivity shocks do not impact trade or the real exchange rate. Finally, our findings show that the financial crisis had a long-run negative impact on both output and trade. |
| Keywords: | Productivity, Trade Balance, International Business Cycle, Cointegration and GVAR |
| JEL: | C11 C23 C32 F14 F21 F32 F44 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:shf:wpaper:2024005&r= |
| By: | BARRIOS Salvador (European Commission - JRC); DELIS Fotis (European Commission - JRC); LANDABASO ALVAREZ Mikel (European Commission - JRC) |
| Abstract: | We provide evidence on the differences in the effective tax rate by firm size, highlighting that effective tax rates tend to follow a bump-shaped curve, increasing from micro to small firms and then decreasing for medium to large firms. Our analysis, based on microdata from several EU countries, shows that both corporate and labour taxation follow this pattern. Econometric analysis reveals that a 1% increase in effective corporate taxation results in a 2.6% decrease in firm turnover growth, with new firms and micro firms being particularly affected. The negative impact of corporate taxation on firm growth is much larger for new firms compared to older firms, and this is especially pronounced in Spain, where a 1% tax hike leads to a turnover growth decrease of 8%. Examining the 2015 Spanish corporate tax reduction for new firms, we find that the reform's overall positive impact was insignificant for micro firms, suggesting the need for more targeted policies considering firm size, age, and ownership. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:taxref:202407&r= |
| By: | Marina Albanese; Guglielmo Maria Caporale; Ida Colella; Nicola Spagnolo |
| Abstract: | This paper examines the impact of transition and physical climate risk on stock markets using, for the first time in this context, the annual CCPI index calculated by Germanwatch as well as its components (in addition to a wide range of other indices) for 48 countries from 2007 to 2023. Specifically, a balanced panel VAR model is estimated to obtain impulse responses for the whole set of countries considered as well as for a subset including the EU-28 only; other methods such as Forecast Error Variance Decomposition and Local Projections (Jorda, 2005, 2022) are then applied for robustness checks. The results suggest a positive impact of transition risk on stock returns and a negative one of physical risk, especially in the short term. Further, while physical risk appears to have an immediate impact, transition risk is shown to affect stock markets also over a longer time horizon. Finally, national climate policies seem to be more effective when implemented within a supranational framework as in the case of the EU-28. |
| Keywords: | climate change, physical risk, transition risk, stock markets, balanced panel VAR, impulse response analysis, local projections |
| JEL: | C33 G12 G18 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11184&r= |
| By: | Lara Coulier; Cosimo Pancaro; Alessio Reghezza (-) |
| Abstract: | We match granular supervisory and credit register data to assess the implications of banks’ exposure to interest rate risk on the monetary policy transmission to bank lending supply in the euro area. We exploit the largest and swiftest increase in interest rates since the creation of the euro and find that banks with a higher exposure to interest rate risk, i.e., with a larger duration gap after accounting for hedging, curtailed corporate lending more than their peers. Ceteris paribus, greater interest rate risk entails closer supervisory scrutiny and potential capital surcharges in the short term, and lower expected profitability and capital accumulation in the medium to long term. We then proceed to dissect banks’ credit allocation and find that banks with higher net duration reshuffled their loan portfolio away from long-term loans in an attempt to limit the increase in interest rate risk and targeted their lending contraction to small and micro firms. Firms exposed to banks with a larger exposure to interest rate risk were unable to fully rebalance their borrowing needs with other lenders, thus experiencing a relatively larger decrease in total borrowing during the monetary tightening episode. |
| Keywords: | Interest rate risk, Duration gap, Bank lending channel, Financial Stability |
| JEL: | E51 E52 G21 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:24/1091&r= |
| By: | Lionel Fontagné; Yoto V. Yotov; Lionel Gérard Fontagné |
| Abstract: | European integration, which culminated in the completion of the Single Market, the single currency and successive enlargements, is now faced with the question of strategic autonomy. Against this backdrop, the present paper has three objectives. First, it assesses the benefits of EU membership based on new, disaggregated trade and production data and using established and cutting-edge empirical methods. Second, it evaluates the costs of strategic autonomy – implying not trading with “riskier” partners. Third, it asks whether further deepening of the Single Market can alleviate these costs. The paper shows that the gains from European integration are substantial, albeit heterogeneous across Member States and sectors, and that the cost of strategic autonomy can be offset by deeper, but comparatively more modest, integration efforts within the European Single Market. |
| Keywords: | European integration, trade costs, trade policy, risky suppliers |
| JEL: | F10 F14 F16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11151&r= |
| By: | Julian Radek; Marco Sebastian Breder; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen) |
| Abstract: | To ensure sustainable green hydrogen (H2) production, the European Union (EU) has introduced regulatory frameworks, such as the Delegated Act on Renewable Hydrogen. These regulations aim to ensure positive environmental effects through green hydrogen by establishing criteria of additionality, as well as spatial and temporal correlation. However, concerns have arisen among stakeholders regarding the potential barriers these criteria may pose to the growth of the EU hydrogen economy. Our analysis examines the implications of these regulations, analyzing the effects of the criteria on green hydrogen production from a system perspective. By doing that, we can assess the interplay with hydrogen production in European non-EU countries, as well as the role of third country import prices and quantities, while accounting for the EU objective of achieving net zero emissions by 2050. Our findings indicate that the EU hydrogen economy may be substantially affected by restrictive criteria for green hydrogen. Policy makers are therefore advised to carefully assess whether a level playing field can be established and to avoid overly restrictive unilateral measures. |
| Keywords: | Hydrogen economy, Green Hydrogen, Energy market modeling, Regulation |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:dui:wpaper:2402&r= |
| By: | Iones Kelanemer Holban |
| Abstract: | We investigate the presence of sign and size non-linearities in the impact of the European Central Bank\textquotesingle s Anti-Fragmentation Policy on non-ERM II, EU countries. After identifying three orthogonal monetary policy shock using the method of Fanelli and Marsi [2022], we then select an optimal specification and estimate both linear and non linear impulse response functions using local projections (Dufour and Renault [1998], Goncalves et al. [2021]). The choice of non-linear transformations to separate sign and size effects is based on Caravello and Martinez-Bruera [Working Paper, 2024]. Lastly we compare the linear model to the non-linear ones using a battery of Wald tests and find significant evidence of sign non-linearities in the international spillovers of ECB policy. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.19938&r= |
| By: | Yannis Dafermos (Department of Economics, SOAS University of London) |
| Abstract: | The European Central Bank (ECB) has recently incorporated climate considerations into its operations. In this paper, I assess whether the ECB’s approach is consistent with the challenges of the climate crisis era. I first identify three transformative implications of the climate crisis for central banking. These are that central banks (i) are becoming less able to control inflation via monetary policy tools, (ii) can no longer ignore their responsibility to support decarbonisation, and (iii) cannot rely on traditional risk exposure approaches to prevent financial instability that stems from physical risks. I then analyse to what extent these implications are reflected in the ECB climate actions and plans, showing that there is a very significant gap between the ECB’s 'tinkering around the edges' approach and the central banking challenges posed by the climate crisis. Using post-Keynesian, critical macro-finance and political economy perspectives, I develop the theoretical underpinnings of a climate-aligned central banking paradigm and analyse the implications of this paradigm for the ECB policy toolbox and mandate. I also identify the ideological and political economy factors that prevent the ECB from undergoing a climate paradigm shift. |
| Keywords: | European Central Bank; monetary policy; financial stability; inflation; climate crisis |
| JEL: | E58 Q54 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:soa:wpaper:264&r= |
| By: | Kai Lessmann; Friedemann Gruner; Matthias Kalkuhl; Ottmar Edenhofer |
| Abstract: | We analyze how conventional emissions trading schemes (ETS) can be modified by introducing ”clean-up certificates” to allow for a phase of net-negative emissions. Clean-up certificates bundle the permission to emit CO2 with the obligation for its removal. We show that demand for such certificates is determined by cost-saving technological progress, the discount rate and the length of the compliance period. Introducing extra clean-up certificates into an existing ETS reduces near-term carbon prices and mitigation efforts. In contrast, substituting ETS allowances with clean-up certificates reduces cumulative emissions without depressing carbon prices or mitigation in the near term. We calibrate our model to the EU ETS and identify reforms where simultaneously (i) ambition levels rise, (ii) climate damages fall, (iii) revenues from carbon prices rise and (iv) carbon prices and aggregate mitigation cost fall. For reducing climate damages, roughly half of the issued clean-up certificates should replace conventional ETS allowances. In the context of the EU ETS, a European Carbon Central Bank could manage the implementation of clean-up certificates and could serve as an enforcement mechanism. |
| JEL: | H23 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11167&r= |
| By: | Sergio Cesaratto; Eladio Febrero; George Pantelopoulos |
| Abstract: | National Central Banks (NCBs) of the Eurosystem pool profits and losses related to monetary policy operations to form the Eurosystem's so-called 'monetary income'. This is then redistributed - i.e. allocated - among NCBs according to respective capital keys (the participation shares of each NCB to the ECB's capital). Monetary income has relevance for current debates such as that concerning the high fiscal costs of an ample reserve regime as a result of the abundant reserves banks hold in the deposit facility of their respective NCBs. These costs are in fact redistributed through the allocation of monetary income. Nonetheless, exactly how monetary income is pooled and subsequently allocated between Eurosystem NCBs remains rather enigmatic. The aim of this paper is to explore how monetary income is both pooled and allocated. This seems a useful task beyond the aforementioned debate to dissipate other puzzling issues like the costs of TARGET2 imbalances. A more detailed dissemination from the relevant authorities as to the process by which profits/losses are pooled and subsequently allocated is however in our view warranted. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:104-2024&r= |
| By: | Giese, Henning; Koch, Reinald; Sureth, Caren |
| Abstract: | This study analyzes the impact of tax complexity on the location of tax employees and tax risk. Using a hand-collected dataset of more than 7, 500 tax employees from 348 European-listed multinationals, we identify two types of firm-level costs associated with tax complexity-tax employees, and tax risk. We find that firms locate more tax employees in countries with greater tax complexity. This association is particularly pronounced for complexity in tax procedures. We also find that multinationals operating in countries with high tax complexity are associated with higher tax risk. The incremental tax risk vanishes for firms that locate more tax employees in countries with highly complex tax procedures, while we find no risk reduction from additional tax employees in countries with complex tax rules. Our results reveal that multinationals eliminate 25 percent of overall tax complexity-related tax risk through targeted location of tax employees. |
| Keywords: | tax complexity, tax complexity cost, tax department, tax employees, tax risk |
| JEL: | H25 H26 M12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:arqudp:300270&r= |
| By: | Costas Milas (Department of Economics, University of Macedonia); Theodore Panagiotidis (University of Liverpool); Georgios Papapanagiotou (Department of Economics, University of Macedonia) |
| Abstract: | This paper uses time-varying Bayesian models to assess the impact of the shifting, and progressively more volatile (especially since the EU Referendum vote in 2016) macroeconomic landscape on Foreign Direct Investment (FDI) inflows to the UK. FDI inflows are depressed in response to higher UK-specific economic and geopolitical uncertainty. A stronger real exchange rate and a higher interest rate also have a negative effect. It benefits from lower UK corporate tax rates and higher US uncertainty, the latter creating investment opportunities in the UK. Rising economic policy uncertainty since the EU Referendum, has led to FDI losses of up to 0.5% of GDP. |
| JEL: | C11 C32 F21 F23 F30 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:mcd:mcddps:2024_04&r= |
| By: | Aleksandra Parteka (Gdansk University of Technology, Gdansk, Poland); Piotr PÅ‚atkowski (Gdansk University of Technology, Gdansk, Poland); Sabina Szymczak (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland) |
| Abstract: | This paper describes the construction of a microlevel database on knowledge creation by higher education institutions (KC-HEI), accompanying the Global Knowledge Input-Output database (KIO, Davies et al., 2023). The database was created as part of Project Rethink GCS. KC-HEI links PATSTAT information on the patenting activity of 866 universities (HEIs) in 31 European countries over four decades (1980-2019), using citation records and patent quality indicators from OECD/STI Micro-data. KC-HEI makes possible analysis of the Institutions' innovation performance across 128 internationally comparable technological sectors and, separately, with respect to Artificial Intelligence (AI). We also develop a unique crosswalk between PATSTAT and ETER that combines KC-HEI with other institution-level datasets (such as ETER and RISIS) and allows us to build a parallel dataset covering 785 patenting and 2101 non-patenting universities in Europe between 2011 and 2019. We illustrate the potential of the KC-HEI database, providing key stylised facts on the role of universities in knowledge creation, while documenting extreme core-periphery patterns of university patenting in Europe and detecting several key university-level factors that reinforce this disparity. |
| Keywords: | Patents, Innovation, Knowledge, Higher Education Institutions, University |
| JEL: | O31 O33 I23 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:gdk:wpaper:73&r= |
| By: | Niehues, Judith; Stockhausen, Maximilian |
| Abstract: | Werden Armutsgefährdungsquoten auf Basis nationaler Schwellenwerte herangezogen, stechen insbesondere einige osteuropäische Länder mit sehr niedrigen Quoten hervor. Gilt der durchschnittliche Lebensstandard der EU als Maßstab, rücken Luxemburg, Belgien und die Niederlande an die Spitze des Rankings. Während Deutschland mit einer Armutsgefährdungsquote von 14, 8 Prozent im Jahr 2021 bei nationaler Betrachtung im (guten) Mittelfeld der EU-27 abschneidet, zählt es mit Blick auf eine europaweite Armutsgefährdungsschwelle eindeutig zu dem Drittel der Länder mit den geringsten kaufkraftbereinigten Armutsrisiken. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkkur:299130&r= |
| By: | Robert Stehrer; Bernhard Dachs; Maria Yoveska |
| Abstract: | In view of the importance of the export economy for Austria this study examines the role and characteristics of Austrian exporting firms compared with non-exporting firms. Specifically, it assesses how the share of exporting firms has developed in recent years, whether exports have become more important for firms over time and to what extent exporters have an advantage over other firms (export premium). The results show that about two third of the Austrian manufacturing firms are engaged in exporting activities and indicate that – in line with existing literature - exporting firms are larger, more productive, generate higher surpluses, invest more, and spend more on environmental protection than non-exporters. Further, the results highlight that only a small number of firms account for a large share of Austrian manufacturing exports. Finally, the results point towards a mutual positive relationship between export behaviour, productivity, and R&D expenditures. |
| Keywords: | Export premium, Firm-level analysis, productivity and exporting |
| JEL: | F14 D22 |
| Date: | 2022–07 |
| URL: | https://d.repec.org/n?u=RePEc:wsr:ecbook:y:2022:m:07:i:viii-002&r= |
| By: | Lange, Jan-Hendrik; Speth, Daniel; Plötz, Patrick |
| Abstract: | Battery electric trucks (BETs) are the most promising option for fast and large-scale CO2 emission reduction in road freight transport. Yet, the limited range and longer charging times compared to diesel trucks make long-haul BET applications challenging, so a comprehensive fast charging network for BETs is required. However, little is known about optimal truck charging locations for longhaul trucking in Europe. Here we derive optimized truck charging networks consisting of publicly accessible locations across the continent. Based on European truck traffic flow estimates for 2030 and actual truck stop locations we construct a long-term minimum charging network that covers the expected charging demand. Our approach introduces an origin-destination pair sampling method and includes local capacity constraints to compute an optimized stepwise network expansion along the highest demand routes in Europe. For an electrification target of 15% BET share in long-haul and without depot charging, our results suggest that about 91% of electric long-haul truck traffic across Europe can be enabled already with a network of 1, 000 locations, while 500 locations would suffice for about 50%. We furthermore show how the coverage of origin-destination flows scales with the number of locations and the size of the stations. Ideal locations to cover many truck trips are at highway intersections and along major European road freight corridors (TEN-T core network). |
| Keywords: | charging infrastructure, battery trucks, megawatt charging |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fisisi:300275&r= |
| By: | Christiansen, Anna Gade (Department of Economics, Copenhagen Business School); Llorca, Manuel (Department of Economics, Copenhagen Business School); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Zhao, Tian (School of Economics and Management, Beihang University, China) |
| Abstract: | This paper investigates how energy networks in the European Union can be encouraged to increase innovation to reach the decarbonisation goals. We design and analyse a tripar-tite evolutionary game model with the European Commission, national energy regulators, and energy network companies being the groups of players in the game. We find that the only evolutionary stable state of the game is where the three groups of players choose cooperation strategies. For the Commission and the national regulatory authorities, induc-ing innovation involves adopting new policy and regulatory mechanisms, respectively. For the energy networks, it involves investing in innovation with decarbonisation goals. We assume that the initial probability of the Commission choosing its cooperation strategy is relatively high and the initial probabilities of the regulators and the energy networks choosing cooperation strategies is relatively low. Numerical simulations suggest that the convergence rate to the evolutionary stable state can be increased if the Commission in-creases the probability of energy networks receiving external funding and penalty im-posed on regulators to adapt their incentive mechanisms to induce innovation. The Com-mission clearly plays a key role in reaching the stable state. |
| Keywords: | Energy networks; innovation; regulation; green transition; tripartite evolutionary game |
| JEL: | C70 L50 L90 O30 Q40 Q50 |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_011&r= |
| By: | Montag, Felix; Sagimuldina, Alina; Winter, Christoph |
| Abstract: | The widespread availability of digital technologies has made mandatory price disclosure policies (MPD) a convenient tool for policymakers to increase price transparency and foster competition. The literature has shown that these can increase or decrease prices. We shed light on the circumstances under which MPD lowers prices. We study the introduction of MPD in the German retail fuel market by combining a stylized theoretical model with detailed data on prices, seller characteristics and consumer information. We find that low levels of prior consumer information, a high number of sellers, and complementary information campaigns foster the procompetitive effects of MPD. |
| Keywords: | Mandatory price disclosure, consumer information, retail fuel market |
| JEL: | D83 L41 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cbscwp:300263&r= |
| By: | Lorenzo Codogno |
| Abstract: | Since the Global Financial Crisis in 2008-2009, there has been flourishing literature on the role of fiscal policy in stimulating demand when the economy is in a deep recession. Past studies suggest the stimulus may make sense if it is temporary, targeted, and withdrawn quickly. However, since the pandemic, there has been a case for going big, when necessary, to prop up expectation, confidence and demand. This was exemplified by Italy's Superbonus 110%, a generous subsidy scheme to allow the energy-efficient renovation of residential buildings, which emerged as a significant policy response to the economic challenges posed by the pandemic. I argue that the Superbonus, while having a respectable economic aim, ended up impinging on the same sectors supported by the EU-funded investment plan, resulting in significant capacity constraints and misallocation of resources. Its excessive generosity brought a massive deterioration in public finances, while its returns in terms of economic growth were short of expectations. I conclude by drawing some policy lessons from Italy's experience, on what should be preserved and avoided, and on a possible reinvented role for fiscal policy in deep economic crisis. |
| Keywords: | Policy Designs and Consistency; National Budget, Deficit and Debt; Crisis management |
| JEL: | E61 H60 H12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:imk:studie:93-2024&r= |
| By: | Maria del Sorbo (European Innovation Council, Bruxelles, Belgium); Carina Faber (European Innovation Council, Bruxelles, Belgium); Marco Grazzi (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy); Francesco Matteucci (European Innovation Council, Bruxelles, Belgium); Miriam Ruß (Wuppertal Institut für Klima, Umwelt, Energie gGmbH, Wuppertal, Germany) |
| Abstract: | A novel analysis of the European Innovation Council (EIC) Accelerator pilot is presented, marking the first extensive examination of its selection process and the impact of its funding on deep tech ventures, in comparison to its predecessor, the SME Instrument. Utilizing applicant data from both programs, the study assesses the EIC’s effectiveness in targeting firms that align with its objectives of driving breakthrough innovation. The research reveals that the EIC Accelerator pilot attracts younger and smaller firms, in comparison to its predecessor. A significantly higher proportion of applicants are high tech and medium high-tech, indicating a strategic shift towards supporting cutting-edge technologies. Despite this shift, the analysis of funding determinants demonstrates a consistent pattern across both programs, emphasizing the influence of firm size, age, and patent portfolio. Further, a regression discontinuity design analysis is used to estimate the impact of funding during the EIC accelerator pilot on firm-level outcomes, such as patenting, revenue, or employment growth. However, the very recent launch of the program shrinks both the observations and the ex-post window, and due to large standard errors the point estimates are not significant at conventional levels. |
| Keywords: | Innovation Policy, Industrial policy, deep-tech, start-up, regression discontinuity, patent, firm growth |
| JEL: | O3 O31 O32 O38 L25 L26 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0037&r= |