Alessandro Palma | GSSI
Managerial Input and Firm Performance. Evidence from a Policy Experiment.
Noemi Pace Seminars
PhD EF
When
Wednesday, April 10, 2024 h. 13:00-14:00
Where
Sala Del Consiglio
Description
Abstract: This paper studies whether a small monetary subsidy to acquire consultancy services can boost firm performance. We examine an Italian subsidy program and identify the causal impact of the policy by comparing firms that nearly got the subsidy to firms that nearly missed it due to small differences in their time of application in a difference-in-differences framework. The subsidy was effective in increasing exports outside the EU, firm labor productivity, profitability, and size. Interviews with consultants reveal that the initial contracts led to enduring relationships with beneficiary firms, and providers offered additional services such as support for digitalization.