G2TT
来源类型Discussion paper
规范类型论文
来源IDDP15779
DP15779 A Retrospective Study of State Aid Control in the German Broadband Market
Tomaso Duso; Mattia Nardotto; Jo Seldeslachts
发表日期2021-02-08
出版年2021
语种英语
摘要We provide an evaluation of the impact of public subsidy schemes that aimed to support the development of basic broadband infrastructure in rural areas of Germany. Such subsidies are subject to state aid control by the European Commission (EC). While the EC increasingly recognises the role of economic analysis in controlling public aid to companies, there are to date no full retrospective studies performed on state aid control, especially assessing the so-called balancing test. In this study, we do not only analyse whether the aid was effective in solving a market failure -- low broadband coverage in rural areas -- but also study its impact on competitive outcomes, on both rival firms and consumers. We adopt a difference-in-differences framework after using a matching procedure to account for selection on observables. We find that the aid significantly increased broadband coverage. More importantly, we find that the number of internet providers has significantly increased in the municipalities receiving aid. This additional entry decreased average prices. Therefore, the subsidies complied with EU state aid rules, both in terms of effectiveness and competition.
主题Industrial Organization
关键词State aid Ex-post evaluation Broadband Coverage Entry Competition Prices
URLhttps://cepr.org/publications/dp15779
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/544779
推荐引用方式
GB/T 7714
Tomaso Duso,Mattia Nardotto,Jo Seldeslachts. DP15779 A Retrospective Study of State Aid Control in the German Broadband Market. 2021.
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