This paper debates some dilemmas involved in today`s Brazilian industrial policy. First, I will explain the current industrial policy debate in Brazil, stressing the dilemmas involved in supporting the development of technology-intensive sectors in a highly diversified economy led by low and...

One lesson of the Great Recession has been that countries with higher shares of industry in their GDP seemed to be less affected by the crisis. Consequently, the call for an industrial renaissance has become stronger. Industrial policy has now become a top priority in countries where it was not...

Die deutsche Heeresindustrie ist technologisch führend in Europa. Als Reaktion auf die veränderte sicherheitspolitische Lage und die veränderten Anforderungen an die Bundeswehr, sind die Industrieunternehmen jedoch gezwungen, ihre Fähigkeiten durch neue Architekturen, veränderte Komponenten...

In this paper, we study the impact of government's budget constraint on the optimal industrial policy in industries with increasing returns to scale. We show that privatization is preferred to regulation for intermediate values of the shadow cost of public funds (i.e., the Lagrange multiplier of...