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PROPAGATION OF POSITIVE EFFECTS OF POST‐DISASTER POLICIES THROUGH SUPPLY CHAINS
Author(s) -
Kashiwagi Yuzuka,
Todo Yasuyuki
Publication year - 2021
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12510
Subject(s) - subsidy , propensity score matching , supply chain , business , matching (statistics) , labour economics , economics , demographic economics , market economy , marketing , statistics , mathematics
This study evaluates the impact of “group subsidies,” a policy intervention intended to repair and reinstall damaged capital goods and facilities of small‐ and medium‐sized enterprises after the Great East Japan earthquake. Employing a propensity‐score‐matching and difference‐in‐differences approach, we find a positive effect of the subsidies on post‐disaster sales and employment of small recipient firms. We also find a positive indirect effect of group subsidies on firms in disaster‐hit prefectures that did not receive any group subsidy but were linked through supply chains with a recipient firm. Our results indicate the propagation of post‐disaster policy effects through supply chains. ( JEL H20, L14, Q54)