Purpose - This study was conducted to understand the potential of cashless subsidy to reduce illegal underground economy activity in Indonesia. Research methodology - The research was done through a qualitative approach then analyzed based on the content analysis and sentiment analysis using...

This article examines the challenges posed by national legislative frameworks in the European Union Member States regarding the management of publicly funded research and development (R&D) projects. Taking the case of Spain and its General Subsidies Act as an example, this study analyzes 55 R&D...

We study the role of the administrative design of energy subsidy programs aimed at encouraging households' transition to cleaner energy sources. Our context is the universal subsidy for clean cooking gas (LPG) in India - households first purchase LPG at the market price (over-the-counter) and...

The sharp rise in electricity prices has led to a discussion on possible subsidies for companies in the form of an industrial power tariff. The subsidies should help companies remain internationally competitive and prevent them from relocating overseas. Although German electricity prices for...

Many governments still help to keep fossil fuels cheap - sometimes by directly paying part of the supply cost (explicit subsidies), and at other times by not including the hidden costs of pollution and health problems they cause in their price (implicit subsidies). But what is the true cost to...

We construct a New-Keynesian E-DSGE model with energy disaggregation and financial intermediaries to show how energy-related fiscal and macroprudential policies interact in affecting the euro area macroeconomy and carbon emissions. When a shock to the price of fossil resources propagates through...

This research estimates by how much the NCS reduces childcare costs for families who use formal childcare in Ireland. The cost 'coverage' of the subsidy, measured by the ratio of the subsidy to the total cost of care, is estimated using the microsimulation model, SWITCH, linked to 2022 data from...

The distributional and disruptive effects of energy supply shocks are potentially large. We study the effectiveness of alternative fiscal responses in a two-country HANK model calibrated to the euro area. Subsidies can stabilize the domestic economy, but they are fiscally costly and generate...

The Covid-19 pandemic caused a global economic crisis, leading governments to provide substantial State Aid to support firms. This paper examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences...

Industrial policies are widespread, but evidence on their workforce effects remains limited. We present novel evidence on the impact of EU technology subsidies on employment and skill demand in Finnish SMEs, 1994-2018. The subsidies fund new machinery, including robots and CNC machines....

This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on...

We examine the welfare effects of removing explicit and implicit fossil fuel subsidies, the latter entailing Pigouvian pricing of local externalities from fossil energy consumption. We map a multi-region, multi-sector general equilibrium model to granular data on subsidies, local marginal...

Many governments still help to keep fossil fuels cheap - sometimes by directly paying part of the supply cost (explicit subsidies), and at other times by not including the hidden costs of pollution and health problems they cause in their price (implicit subsidies). But what is the true cost to...

Oil price increases that began in late 2020 led to a global proliferation of liquid fuel subsidies and price controls as governments tried to reduce, redistribute, or delay the impact of rising and volatile energy prices on consumers. This paper draws on a unique database to analyze the...

Oil price increases that began in late 2020 have led to a global proliferation of liquid fuel subsidies and price controls, as governments sought to reduce, redistribute, or delay the impact of rising and volatile energy prices on consumers. This report draws on two new global databases...

Using Chinese firm-level trade data combined with global anti-dumping (AD) and countervailing duty (CVD) investigations, we uncover a previously overlooked cost of industrial policy under WTO agreements. At every stage of AD/CVD investigation, subsidies significantly raise the probability of...

We analyze the equilibrium effects of different subsidies on target goods under both perfectly competitive and monopolistic market structures. We concentrate our analysis on three particularly common forms of subsidies: (i) a per-unit subsidy, (ii) an ad valorem subsidy, and (iii) an "inversely...

We analyse the long-term impact of hiring subsidies on both job and employment security. The subsidy that we examine was introduced in Italy through the 2015 Budget Law, with the goal of promoting open-ended contracts. We employ a non-linear difference-in-differences (NL-DiD) approach within a...

In the period March 2022 to June 2024, nearly €796 billion of aid was approved either under the Temporary Crisis and Transition Framework or directly under the Treaty and based on TCTF principles. Around €219 billion was actually granted to companies, representing 27% of the aid approved and...

The objective of this paper is to gain insight in and compare the macroeconomic effects of increasing wage subsidies for researchers in Belgium in different industries. Starting from the observation that the implicit wage subsidy rate for R&D workers is not distributed evenly across industries,...

A significant proportion of investments involving public procurement and state aid are still to be implemented over the remaining duration of the RRF. Non-compliance with public procurement and state aid rules is a perennial problem in EU budget expenditure. In this audit we examined the RRF...

A significant proportion of investments involving public procurement and state aid are still to be implemented over the remaining duration of the RRF. Non-compliance with public procurement and state aid rules is a perennial problem in EU budget expenditure. In this audit we examined the RRF...

The European Union's industrial policy has gained renewed significance in response to geopolitical shifts, intensifying global competition, and the twin digital and green transitions. This paper analyses the coinciding role that EU State aid law plays as a coordinating instrument for EU...

This article estimates the impact of government subsidies on productivity growth in South Africa, joining the ongoing debate among economists regarding the effectiveness of subsidies as a driver of industrial productivity. While some argue that subsidies address market failures, facilitate R&D,...

The global transition to renewable energy is essential for long-term sustainable development and climate change mitigation. Hybrid Renewable Energy Systems (HRES) offer a viable solution for reducing carbon emissions, increasing energy security, and providing reliable electricity. This study...

The level of government support significantly influences the performance of European railways. However, prior analyses have largely focused on the sector as a whole, neglecting the distribution of public budget contributions between the upstream infrastructure manager and downstream service...