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Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects

Researchers often estimate average treatment effects of programs without investigating heterogeneity across units. Yet, individuals, firms, regions, or countries vary in their ability to utilize transfers. We analyze Objective 1 transfers of the EU to regions below a certain income level by way of a...

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Published in:	American economic journal. Economic policy 2013-11, Vol.5 (4), p.29-77
Main Authors:	Becker, Sascha O., Egger, Peter H., von Ehrlich, Maximilian
Format:	Article
Language:	English
Subjects:	Absorptive capacity Countries Econometrics Economic growth Economic policy Economic regions Education Endowments European Commission Financial investments Government spending Gross domestic product Human capital Investment income Macroeconomics Per capita Polynomials Regions Regression analysis Standard error Statistical analysis Technology adoption Transfers
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creator	Becker, Sascha O. Egger, Peter H. von Ehrlich, Maximilian
description	Researchers often estimate average treatment effects of programs without investigating heterogeneity across units. Yet, individuals, firms, regions, or countries vary in their ability to utilize transfers. We analyze Objective 1 transfers of the EU to regions below a certain income level by way of a regression discontinuity design with systematically varying heterogeneous treatment effects. Only about 30 percent and 21 percent 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, respectively. In general, the variance of the treatment effect is much bigger than its mean.
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source	JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global; Politics Collection; PAIS Index; EBSCO_EconLit with Full Text（美国经济学会全文数据库）; American Economic Association Web; ProQuest Social Science Premium Collection
subjects	Absorptive capacity Countries Econometrics Economic growth Economic policy Economic regions Education Endowments European Commission Financial investments Government spending Gross domestic product Human capital Investment income Macroeconomics Per capita Polynomials Regions Regression analysis Standard error Statistical analysis Technology adoption Transfers
title	Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects
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