Evaluation of Subsidy Programmes

This research group develops the scientific foundations for causal impact analysis of policy interventions within the European Union, with a particular focus on place-based policies. Despite significant public spending on such programmes in many developed economies, there is limited evidence on their effectiveness and efficiency.

Our approach integrates three key dimensions: first, the systematic use of administrative funding data and legislative documents; second, the application of advanced methods in policy impact evaluation; and third, the exchange of knowledge among researchers, policymakers, public administration, and civil society. Without this integration, research risks becoming either overly abstract or disconnected from the institutional and legal realities of policy implementation. By combining these elements, we create robust research designs grounded in real data and legal frameworks.

This approach allows us to generate evidence-based insights that contribute to better informed decision-making—not only in politics but also within civil society. The findings of our work have contributed to the revision and improvement of existing subsidy programmes. The research group is closely embedded in the activities of the Centre for Evidence-based Policy Advice (CEP), ensuring both scientific rigor and practical relevance. In doing so, we embody the leitmotif of the Leibniz Association: theoria cum praxi.

Research Cluster
Economic Dynamics and Stability

Your contact

PD Dr Mirko Titze
PD Dr Mirko Titze
- Department Centre for Evidence-based Policy Advice
Send Message +49 345 7753-861

EXTERNAL FUNDING

05.2024 ‐ 10.2024

Evaluation, Monitoring and Scientific Support of Structural Change in Lusatia, BTU

State of Brandenburg/State Chancellery

PD Dr Mirko Titze

01.2022 ‐ 10.2023

Evaluation, Monitoring and Scientific Support of Structural Change in Lusatia

State of Brandenburg/State Chancellery

PD Dr Mirko Titze

08.2018 ‐ 06.2023

Evaluation of the Joint Task “Improving the Regional Economic Structure” (GRW) through Individual Company Performance Reviews

Federal Ministry for Economic Affairs and Energy (BMWI)

PD Dr Mirko Titze

09.2019 ‐ 09.2022

Establishing Evidence-based Evaluation Methods for Subsidy Programmes in Germany (EVA-KULT)

The project aims at expanding the Centre for Evidence-based Policy Advice at the Halle Institute for Economic Research (IWH-CEP).

see project's webpage

PD Dr Mirko Titze

02.2019 ‐ 01.2022

Analysis and Design of Support Programmes to Manage Structural Change in Regions Affected by the Energy Transition

Federal Ministry of Education and Research (BMBF)

PD Dr Mirko Titze

01.2018 ‐ 12.2020

Networked growth - Innovative Saxony-Anhalt through digital business models (Competence Center 4.0)

PD Dr Mirko Titze

01.2017 ‐ 12.2018

Political Participation in Eastern Germany

Dr Matthias Brachert

12.2015 ‐ 11.2018

Socio-economic Effects of Research on Innovative Approaches for POC Diagnostics

Part of the EXASENS project. Coordinated by the Leibniz Institute of Photonic Technology (IPHT) in Jena, nine Leibniz institutes are working together on researching point-of-care (POC) technology for the prediction and diagnosis of chronic inflammatory respiratory diseases. See press release.

Dr Matthias Brachert

02.2017 ‐ 02.2018

The Importance of Non-University Research Institutions for the Development of Firms and Regions (Be_For_Reg-Projekt)

PD Dr Mirko Titze

01.2015 ‐ 12.2016

Evaluation of the "Joint Task 'Improving the Regional Economic Structure'" in the Federal State of Saxony-Anhalt

PD Dr Mirko Titze

Refereed Publications

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A Professor Like Me: The Influence of Instructor Gender on College Achievement

Florian Hoffmann Philip Oreopoulos

in: Journal of Human Resources, Vol. 44 (2), 2009

Abstract

Many wonder whether teacher gender plays an important role in higher education by influencing student achievement and subject interest. The data used in this paper help identify average effects from male and female college students assigned to male or female teachers. We find instructor gender plays only a minor role in determining college student achievement. Nevertheless, the small effects provide evidence that gender role models matter to some college students. A same-sex instructor increases average grade performance by at most 5 percent of its standard deviation and decreases the likelihood of dropping a class by 1.2 percentage points.

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Soll die Höhe von Investitionszuschüssen an die Einführung von Umweltmanagementsystemen gekoppelt werden?

Mirko Titze

in: List Forum für Wirtschafts- und Finanzpolitik, Vol. 35 (1), 2009

Abstract

In jeder arbeitsteiligen Gesellschaft ist Wirtschaftspolitik erforderlich. Im Rahmen der Wirtschaftspolitik wird versucht, ein komplexes Geflecht von Zielen zu erreichen. Es kann auch vorkommen, dass mit dem Erreichen eines Ziels ein anderes geschwächt wird. Dies ist Gegenstand des vorliegenden Beitrags. Konkret geht es um das Ziel Verbesserung der Wirtschaftsstruktur und das Umweltziel. Das Strukturziel wird in der Bundesrepublik Deutschland unter anderem über die Investitionszuschüsse im Rahmen der Gemeinschaftsaufgabe ‚Verbesserung der regionalen Wirtschaftsstruktur‘ verfolgt, die über die Länder ausgereicht werden. Einige Länder sind dazu übergegangen, die Gewährung von Investitionszuschüssen an Sekundärziele, zum Beispiel auch den Umweltschutz, zu knüpfen. Der vorliegende Beitrag beschreibt einen aktuellen Fall aus dem politischen Diskussionsprozess, in dem die Höhe des Fördersatzes an die Einführung von so genannten Umweltmanagementsystemen gebunden wird. Der Beitrag zeigt, dass unter bestimmten Konstellationen die Investitionstätigkeit gebremst wird und gleichzeitig Umweltmanagementsysteme nicht eingeführt werden. Damit hätte man beide Ziele nicht erreicht. Der bessere Weg bestünde in der direkten Unterstützung von Unternehmen, bei denen ein Umweltmanagementsystem sinnvoll ist, wie es bereits durch Programme auf Landesebene praktiziert wird.

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Professor Qualities and Student Achievement

Florian Hoffmann Philip Oreopoulos

in: Review of Economics and Statistics, Vol. 91 (1), 2009

Abstract

This paper analyzes the importance of teacher quality at the college level. Instructors are matched to objective and subjective characteristics of teacher quality to estimate the impact of rank, salary, and perceived effectiveness on student performance and subject interest. Student and course fixed effects, time of day and week controls, and students' lack of knowledge about first-year instructors help minimize selection biases. Subjective teacher evaluations perform well in measuring instructor influences on students, while objective characteristics such as rank and salary do not. Overall, the importance of college instructor differences is small, but important outliers exist.

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Working Papers

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Is Subsidizing Companies in Difficulties an Optimal Policy? An Empirical Study on the Effectiveness of State Aid in the European Union

Nicole Nulsch

in: IWH Discussion Papers, No. 9, 2014

Abstract

Even though state aid in order to rescue or restructure ailing companies is regularly granted by European governments, it is often controversially discussed. The aims for rescuing companies are manifold and vary from social, industrial and even political considerations. Well-known examples are Austrian Airlines (Austria) or MG Rover (Great Britain). Yet, this study aims to answer the question whether state aid is used effectively and whether the initial aim why aid has been paid has been reached, i.e. the survival of the company. By using data on rescued companies in the EU and applying a survival analysis, this paper investigates the survival rates of these companies up to 15 years after the aid has been paid. In addition, the results are compared to the survival rates of non-rescued companies which have also been in difficulties. The results suggest that despite the financial support, business failure is often only post-poned; best survival rates have firms with long-term restructuring, enterprises in Eastern Europe, smaller firms and mature companies. However, non-funded companies have an even higher ratio to go bankrupt.

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Related Variety, Unrelated Variety and Regional Functions: A spatial panel approach

Matthias Brachert Alexander Kubis Mirko Titze

in: Papers in Evolutionary Economic Geography, 2013

Abstract

The paper presents estimates for the impact of related variety, unrelated variety and the functions a region performs in the production process on regional employment growth in Germany. We argue that regions benefit from the existence of related activities that facilitate economic development. Thereby the sole reliance of the related and unrelated variety concept on standard industrial classifications (SIC) remains debatable. We offer estimations for establishing that conceptual progress can be made when the focus of analysis goes beyond solely considering industries. We develop an industry-function based approach of related and unrelated variety and test our hypothesis by the help of spatial panel approach. Our findings suggest that related variety as same as unrelated variety facilitate regional employment growth in Germany. However, the drivers behind these effects do differ. While the positive effect of related variety is driven by high degrees of relatedness in the regional “R&D” and “White-Collar”-functions, the effects of unrelated variety are spurred by “Blue Collar”-functions in this period.

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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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