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Sarah Fritz

Sarah Fritz
Current Position

since 2/20

Economist at the Centre for Evidence-based Policy Advice (IWH-CEP)

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests
  • place-based policies
  • spatial distribution of economic activity
  • policy impact analysis

Sarah Fritz joined the Centre for Evidence-based Policy Advice (IWH-CEP) as a doctoral student in February 2020. Her research focuses on place-based policies, the spatial distribution of economic activity, and policy impact analysis.

Sarah Fritz received her bachelor's degree from the Sciences Po Undergraduate College in Nancy and her master's degree from Bocconi University.

Your contact

Sarah Fritz
Sarah Fritz
- Department Centre for Evidence-based Policy Advice
Send Message +49 345 7753-741 Personal page LinkedIn profile

Working Papers

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A Helping Hand, but not a Lift. EU Cohesion Policy and Regional Development

Eva Dettmann Sarah Fritz

in: IWH Discussion Papers, No. 18, 2025

Abstract

This study provides new evidence on the impact of the EU Cohesion Policy on income growth in less developed regions. Our panel includes data from all European regions for the years 1989-2020. Using a fuzzy Regression Discontinuity Design, we model treatment dynamics by applying a random effects estimator. Based on digitized historical data, we precisely replicate the policy rule and correctly classify the regions’ eligibility status. Results show that the policy has a moderate positive effect on GDP per capita growth in the targeted regions.

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Declining Free Lunch: State Capacity and Foregone Public Spending

Sarah Fritz Lorenzo Incoronato Catherine van der List

in: RFBerlin Discussion Paper, No. 67, 2025

Abstract

This paper documents substantial fiscal waste in the context of one the world’s largest regional development programs – the EU Cohesion Policy. We study Italy, and find that 20% of funding commitments are never paid out and funneled into unfinished or never-started projects. In our setting, this happens for reasons unrelated to fiscal constraints – municipalities appear to simply leave money on the table. Foregone spending is more prevalent in Southern regions, but there is also stark variation across municipalities within regions. We show that such under-utilization of available funds is strongly associated with limited administrative capacity of local governments.

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Reshaping the Economy? Local Reallocation Effects of Place-Based Policies

Sarah Fritz Catherine van der List

in: CESifo, No. 12031, July 2025

Abstract

We study the effects of place-based policies on aggregate productivity using administrative data on projects co-financed by the EU in Italy linked to balance sheet data. We exploit quasi-experimental variation in funding for a large place-based policy stemming from measurement error in regional GDP estimates. Results show that the policy likely decreases productivity. Decompositions reveal that aggregate declines are driven by reallocation of labor to low-productivity firms. Mechanism analysis using firm-level event studies reveals that negative reallocation effects are caused by high-productivity firms taking up the funds and subsequently becoming more liquidity constrained, leading to slowdowns in employment growth.

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