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Rethinking industrial policy

Author

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  • Philippe Aghion
  • Julian Boulanger
  • Elie Cohen
Abstract
Industrial policy has a bad name- ‘picking winners’ and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change- without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism- laissez-faire complacency by many governments has led to mis-investment in the non-tradable sector at the expense...

Suggested Citation

  • Philippe Aghion & Julian Boulanger & Elie Cohen, 2011. "Rethinking industrial policy," Policy Briefs 566, Bruegel.
    • Handle: RePEc:bre:polbrf:566
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