This study estimates the establishment-level employment effects of investment grants in Germany. In addition to the average treatment effect on the treated, we analyse the influence of establishment’s characteristics and economic environment on the magnitude of the effect. We apply a...

This study estimates the establishment-level employment effects of investment grants in Germany. In addition to the average treatment effect for the treated, we focus on discrimination in the funding rules as potential source of effect heterogeneity. We combine the difference-in-differences...

Empirical studies use the assumption of stability in individual risk attitudes when searching for a relationship between attitude to risk and the decision to become and survive as an entrepreneur. We show that risk attitudes do not remain stable but face endogenous adaption when starting a new...

We study whether government subsidies can stimulate bank funding of marginal investment projects and the associated effect on financial stability. We do so by exploiting granular project-level information for the largest regional economic development programme in Germany since 1997: the...