We investigate the misuse of R&D subsidies and evaluate its consequences for policy effectiveness. Developing a theoretical framework and using Chinese firm-level data for 2001-2011, we identify that 42% of grantees misappropri- ated R&D subsidies for non-R&D purposes, accounting for 53% of...

We offer a contribution to the analysis of optimal monetary policy. The standard approach to determine what policy rule a central bank should follow is to take a single structural model and minimize the unconditional volatilities of inflation and real activity. In this paper, we propose monetary...

This paper examines the impact of borrower-based macroprudential policy tightening on mortgage lending in Slovakia, focusing in particular on the role of financial advisors in shaping loan characteristics. Using a comprehensive loan-level dataset from Slovak banks, we analyze the effects of key...

This paper introduces Parameter Estimation by Raw Moments (PERM), a flexible method for evaluating a policy's impact on the parameters of an outcome distribution. Such parameters include the variance (E[Y 2 ]-E[Y] 2 ), skewness and covariance of two outcomes. PERM simplifies distributional...

We study the effects of the SRU law introduced in France in December 2000 to support scattered development of public housing in cities and favor social mixity. This law imposes 20% of public dwellings to all medium and large municipalities of large-enough cities, with fees for those not abiding...

Earlier research using the directed technical change framework argues that with the right mix of policies, governments can steer firms' R&D efforts away from harmful technologies toward supposedly cleaner alternatives. This article puts that assumption to the test by examining the impact of the...

A broad empirical literature examines the impact of corporate taxes on firms' investment, location, and tax avoidance behaviour. Other corporate adjustment margins have received little attention. In this paper, we use administrative customs and tax return data from South Africa to demonstrate...

This paper assesses the effectiveness and public finance implications of the German debt brake, a constitutional balanced budget rule introduced in 2009 that aims to ensure a sustainable path of public indebtedness. In order to estimate its causal effects, our paper employs a synthetic control...

Universal Credit (UC) was a large-scale reform of the UK welfare system reform, replacing six existing benefits. UC aimed to simplify claims and encourage more claimants into work. We identify its effect on mental well-being, treating the phased rollout from 2013-2018 as a natural experiment. We...

This paper examines the impact of a reform aimed at expediting graduation times in Italian universities by reducing the number of exams students must pass to obtain the fixed number of credits required to graduate. Using event-study estimates that leverage the reform's staggered implementation,...

This paper introduces Parameter Estimation by Raw Moments (PERM), a flexible method for evaluating a policy's impact on the parameters of an outcome distribution. Such parameters include the variance (E[Y 2 ]−E[Y] 2 ), skewness and covariance of two outcomes. PERM simplifies distributional...

We study the effects of the SRU law introduced in France in December 2000 to support scattered development of public housing in cities and favor social mixity. This law imposes 20% of public dwellings to all medium and large municipalities of large-enough cities, with fees for those not abiding...

This paper examines the impact of a reform aimed at expediting graduation times in Italian universities by reducing the number of exams students must pass to obtain the fixed number of credits required to graduate. Using event-study estimates that leverage the reform's staggered implementation,...

This study empirically examines whether Brazil's remarkable economic growth from 2003 to 2010 was primarily driven by Lula's policies or favorable global economic conditions using the Synthetic Control Method - a robust causal inference technique for assessing policy effects when randomized...

A broad empirical literature examines the impact of corporate taxes on firms' investment, location, and tax avoidance behaviour. Other corporate adjustment margins have received little attention. In this paper, we use administrative customs and tax return data from South Africa to demonstrate...

Earlier research using the directed technical change framework argues that with the right mix of policies, governments can steer firms' R&D efforts away from harmful technologies toward supposedly cleaner alternatives. This article puts that assumption to the test by examining the impact of the...

Universal Credit (UC) was a large-scale reform of the UK welfare system reform, replacing six existing benefits. UC aimed to simplify claims and encourage more claimants into work. We identify its effect on mental well-being, treating the phased rollout from 2013-2018 as a natural experiment. We...

We offer a contribution to the analysis of optimal monetary policy. The standard approach to determine what policy rule a central bank should follow is to take a single structural model and minimize the unconditional volatilities of inflation and real activity. In this paper, we propose monetary...

This paper examines the impact of borrower-based macroprudential policy tightening on mortgage lending in Slovakia, focusing in particular on the role of financial advisors in shaping loan characteristics. Using a comprehensive loan-level dataset from Slovak banks, we analyze the effects of key...

This paper assesses the effectiveness and public finance implications of the German debt brake, a constitutional balanced budget rule introduced in 2009 that aims to ensure a sustainable path of public indebtedness. In order to estimate its causal effects, our paper employs a synthetic control...

This study empirically examines whether Brazil's remarkable economic growth from 2003 to 2010 was primarily driven by Lula's policies or favorable global economic conditions using the Synthetic Control Method - a robust causal inference technique for assessing policy effects when randomized...

This study examines the labor market impacts of Canada's 2014 reforms to the Temporary Foreign Worker Program (TFWP), which introduced stricter limits on hiring low-skilled foreign workers. Using a difference-in-differences framework with Labour Force Survey data from 2005 to 2019, we compare...

In 2020, the world was shaken by a very unexpected development, an unseen virus which could kill millions and spread without control. To reduce the impact of the pandemic and before the vaccine was created, lockdown and other safety measures were implemented. In this context, the socio-economic...

This paper considers the impact of a major public sector relocation: the British Broadcasting Corporation's partial move from London to Salford, Greater Manchester starting in 2011. We identify effects of the move using synthetic control methods applied to plant-level data at Local Authority and...

The European Commission co-funds public projects through the European Structural and Investment Funds (ESIF) to stimulate the sustainable economic development of EU Member States. The ESIF budget is about 90 billion euros annually and ESIF beneficiaries are explicitly encouraged to increase...

This study analyses the impact of vouchers, an Italian alternative work arrangement, on earnings of atypical workers. We investigate whether this form of very flexible casual work substitutes for income from more standard labor contracts and from employment insurance programs. We rely on panel...

Governments worldwide subsidize rural broadband expansion to address the urban-rural connectivity divide, but the economic benefits and costs remain unclear. This paper examines the causal effect of high-speed Internet on real estate prices and evaluates the fiscal effectiveness of rural...

We investigate the misuse of R&D subsidies and evaluate its consequences for policy effectiveness. Developing a theoretical framework and using Chinese firm-level data for 2001-2011, we identify that 42% of grantees misappropriated R&D subsidies for non-R&D purposes, accounting for 53% of total...

With the growing attention being paid to environmental issues by the public, environmental information disclosure (EID) has become a vital means for firms to convey their social responsibility and an important information source for lending institutions to assess firm credit risk. Based on the...

Common mental health problems impose significant costs on individuals and societies, yet healthcare systems often overlook them. We provide the first causal evidence on the effectiveness of a pioneering, nationwide mental health service for treating depression and anxiety disorders in England...

In this paper, we evaluate the impact of a reform introduced in Italy in 2018 (Decreto Dignità), which increased the rigidity of employment protection legislation (EPL) of temporary contracts, rolling back previous policies, to reduce job instability. We use longitudinal labour force data from...

Independent and high-quality evaluations of government policies are an important input for designing evidence-based policy. Lack of incentives and institutions to write such evaluations, on the other hand, carry the risk of turning the system into a costly beauty contest. We study one of the...

Randomized controlled trials (RCTs) are a major success story, promising to improve science and policy. Despite some controversy, RCTs have spread toward Northern and Southern countries since the early 2000s. How so? Synthesizing previous research on this question, this article argues that...