Becker, Sascha O., Egger, Peter and Ehrlich, Maximilian von (2012) Absorptive capacity and the growth and investment effects of regional transfers : a regression discontinuity design with heterogeneous treatment effects. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2012 (Number 89).

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Abstract

Researchers often estimate average treatment effects of programs without investigating heterogeneity across units. Yet, individuals, firms, regions, or countries vary in their ability, e.g., to utilize transfers. We analyze Objective 1 Structural Funds transfers of the European Commission to regions of EU member states below a certain income level by way of a regression discontinuity
design with systematically heterogeneous treatment effects. Only about 30% and 21% of the regions - those with sufficient human capital and good-enough institutions - are able to turn transfers into faster per-capita
income growth and per-capita investment. In general, the variance of the treatment effect is much bigger than its mean.

Item Type:	Working or Discussion Paper (Working Paper)
Alternative Title:	Absorptive capacity and the growth and investment effects of regional transfers : regression discontinuity design with heterogeneous treatment effects
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Finance -- European Union countries, Investments - European Union countries, Economics -- Mathematical models, Regional economics -- European Union countries
Series Name:	CAGE Online Working Paper Series
Publisher:	Department of Economics, University of Warwick
Place of Publication:	Coventry, UK
Official Date:	March 2012
Dates:	Date Event March 2012 Published
Volume:	Volume 2012
Number:	Number 89
Number of Pages:	58
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access
Version or Related Resource:	Becker, Sascha O., et al. (2011). Absorptive capacity and the growth effects of regional transfers : a regression discontinuity design with heterogeneous treatment effects. Coventry : Centre for Economic Policy Research. (CEPR Discussion Paper no.8474). http://wrap.warwick.ac.uk/id/eprint/45517
Related URLs:	Related item in WRAP

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