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Evaluating project deadweight measures: evidence from Finnish business subsidies

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Tokila, A., & Haapanen, M. (2009). Evaluating project deadweight measures: evidence from Finnish business subsidies. Environment and Planning C: Government and Policy, 27(1), 124–140. https://doi.org/10.1068/c0804b
Published in
Environment and Planning C: Government and Policy
Authors
Tokila, Anu |
Haapanen, Mika
Date
2009
Discipline
TaloustiedeEconomics
Copyright
© 2009 Pion Limited. This is an electronic final draft version of an article whose final and definitive form has been published in Environment and Planning C: Government and Policy by Pion Limited.

 
An important problem in measuring the impacts of business subsidies is their separation from deadweight, which refers to changes that would have occurred even in the absence of intervention. Both public and private assessments have been used previously to study deadweight, but so far little is known about how they correspond to each other. To address this issue, we conducted a joint evaluation of the private and public assessments of deadweight for Finnish business projects. A unique data set combines large register data with both public and private information on projects financed in 2000–2003. First, our results suggest that the different measures for deadweight are greatly uncorrelated, and thus cannot be used as substitutes. Second, characteristics affecting the public and private measures of deadweight are identified using ordered probit models. We find that the public and private sectors emphasize different factors in their assessment of deadweight. Third, an upper bound for the level of deadweight spending is estimated at 73.8%. ...
Publisher
Pion Limited
ISSN Search the Publication Forum
0263-774X
Keywords
deadweight vaikutus deadweight effect yritystuet arviointi
DOI
https://doi.org/10.1068/c0804b
URI

http://urn.fi/URN:NBN:fi:jyu-201205161664

Publication in research information system

https://converis.jyu.fi/converis/portal/detail/Publication/17891216

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