The Effect of Government Rescue Packages on Creative Destruction

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bachelor_Kaskisaari_Olavi_2023.pdf (529.79 KB)
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Volume Title
School of Business | Bachelor's thesis
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Author
Date
2023
Department
Taloustieteen laitos
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
25
Series
Abstract
This literature review investigates the effects of government rescue packages on creative destruction. It will discuss the theory of productivity growth through creative destruction and include empirical evidence on how rescue packages affect creative destruction. Based both on theory and empirical evidence, there are indications that rescue packages could have a negative effect on creative destruction. However, the direct empirical evidence of these effects is inconclusive. There is some indirect evidence that points more strongly towards a negative effect. The most compelling of these is the fact that government rescue packages greatly decrease a firms’ probability to exit a market.
Description
Thesis advisor
Valmari, Nelli
Keywords
creative destruction, productivity growth, rescue packages, productivity
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https://urn.fi/URN:NBN:fi:aalto-202401211628
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[kand] Kauppakorkeakoulu / BIZ (Open Access)