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Information Frictions and Firm Take up of Government Support: A Randomised Controlled Experiment

Guest speaker

Cláudia Custódio (Imperial College London)




Start20.04.2022 11:00End20.04.2022 12:00

Event summary


This paper studies whether informational frictions prevent firms from accessing government support using

a randomised controlled trial. We focus on two Portuguese COVID-19 relief programs, providing (i) wage

support for workers who are kept on payroll and (ii) credit lines backed by government guarantees. We

randomly assign firms to a treatment providing either simplified information about a program, or a

combination information and step-by-step application support. We find a significant treatment effect on

take up of the wage support program. Our results constitute direct evidence that information frictions

act as a barrier to comprehensive distribution of firm-level support measures.


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