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Journal of Industry, Competition and Trade

, Volume 11, Issue 4, pp 399–426 | Cite as

Determinants of the European Commission’s State Aid Decisions

  • Caroline Buts
  • Marc Jegers
  • Tony Joris
Article

Abstract

We study whether the European Commission’s State aid decisions are in line with the goals of the State Aid Action Plan (2005–2009). Next, we explore the determinants of these decisions using data for 2007 on 600 cases. We find by means of logit and probit regressions that authorization is more likely when notification took place recently. Furthermore, ad hoc aid measures have a higher risk to end up in a negative decision, whereas schemes are more positively evaluated. Being in the objective category of firms or sectors in difficulties can reduce the probability of a positive outcome. Our results indicate that most of the Commission decisions are, on average, in line with the Action Plan.

Keywords

state aid (control) European Commission logit 

JEL classification

H25 H71 F55 K33 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Vrije Universiteit Brussel, Microeconomics of the profit and nonprofit sectorsBrusselsBelgium
  2. 2.Vrije Universiteit Brussel, Centre for European LawBrusselsBelgium

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