Empirical Assessment (Step 3)

No AccessAug 2021Empirical Assessment (Step 3)Authors/Editors: Georgiana Pop, Mariana Iootty, Miriam Bruhn, Claudia Ruiz OrtegaGeorgiana PopSearch for more papers by this author, Mariana IoottySearch for more papers by this author, Miriam BruhnSearch for more papers by this author, Claudia Ruiz OrtegaSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1703-8_ch4AboutView ChaptersFull TextPDF (1.1 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Examines the quantitative assessment of the Romanian aid scheme, including the Romanian Counter-Guarantee Fund Scheme, the Ministry of Public Finance Scheme, and the Ministry of European Funds Scheme. The empirical assessment follows two angles—the direct effect and the indirect effect—which prove complementary. The direct effect (summarized as the incentive effect) requires an understanding of the counterfactual (whether the aid has caused the beneficiary to take a different course of action) and captures how significant the impact of the aid has proven in order to answer whether the aid scheme achieved its policy objective. The indirect effect captures both the degree to which the aid scheme has generated spillover effects at nonbeneficiaries, as well as the extent to which it has caused distortions in competition outcomes. If possible, the analysis uses the empirical results of direct and indirect effects to provide insights into the proportionality and appropriateness of the aid scheme. ReferencesKing, G and R Nielsen 2019. “Why Propensity Scores Should Not Be Used for Matching.” Political Analysis 27 (4): 435–54. Google ScholarSun, L and S Abraham 2020. “Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects.” Background Paper, Massachusetts Institute of Technology, Cambridge, MA. http://economics.mit.edu/files/14964. Google Scholar Previous chapterNext chapter FiguresreferencesRecommendeddetails View Published: August 2021ISBN: 978-1-4648-1703-8 Copyright & Permissions Related CountriesRomaniaRelated TopicsFinance and Financial Sector DevelopmentMacroeconomics and Economic GrowthPrivate Sector Development KeywordsCOMPETITIONAID EFFECTIVENESSSPILLOVER EFFECTSMARKET FORCESPUBLIC INVESTMENTINVESTMENT CLIMATESTATE AIDGUARANTEE PROGRAMSMALL AND MEDIUM-SIZE ENTERPRISESSMESMICROENTERPRISESENTREPRENEURSDEVELOPMENT OUTCOMES PDF DownloadLoading ...