Seminários GEE

The authors exploit the assignment mechanism of the APOIAR Program, a generous initiative designed to support firms during the COVID-19 pandemic, to provide causal evidence on the impact of grants on firm performance in times of crisis. Using a regression discontinuity design and drawing on a combination of administrative datasets, they find that eligible firms experienced a short-term increase in profitability in 2021, although these effects did not persist into 2022. No significant differences were detected in revenue growth or cost reduction, indicating that the increase in profitability was due to the subsidy. Firms allocated part of the support to rental payments and office supplies, including modest investments in digitalization.

Apresentação 102.º Seminário GEE/GPEARI - Sailing through Troubled Waters: Evidence from the APOIAR Program.pdf