Luca Rubini
- Published in print:
- 2009
- Published Online:
- May 2010
- ISBN:
- 9780199533398
- eISBN:
- 9780191714740
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199533398.001.0001
- Subject:
- Law, Public International Law, EU Law
This book presents a conceptual framework for analysing the definitions of State aid and subsidy in EC and WTO law. This is done through a comparative analysis, examining the coherence of the ...
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This book presents a conceptual framework for analysing the definitions of State aid and subsidy in EC and WTO law. This is done through a comparative analysis, examining the coherence of the conceptual understanding of the crucial, but still elusive, issue of the definition of subsidy. The first, important finding is that the topic is not only technical but raises more fundamental questions about the objectives of subsidy control in a given legal system and, more radically, about the goals of that system itself. The analysis does not only concentrate on the state of the law but critically looks forward, offering suggestions for new interpretations and law reform. The book focuses on the substantive provisions of the EC and WTO relating to what are identified by the author as the core properties of a notion of subsidy, i.e., a form of public action, the grant of an economic advantage and the ensuing impact on the competitive process. The current regulation in EC and WTO law is analysed, compared, and assessed in depth, and tested against a baseline represented by a notion of subsidy inserted in a subsidy regulation pursuing certain objectives. Drawing on the results of the comparative exercise, the book argues that both systems can learn valuable lessons from each other to achieve a greater coherence and a more efficient regulatory system.Less
This book presents a conceptual framework for analysing the definitions of State aid and subsidy in EC and WTO law. This is done through a comparative analysis, examining the coherence of the conceptual understanding of the crucial, but still elusive, issue of the definition of subsidy. The first, important finding is that the topic is not only technical but raises more fundamental questions about the objectives of subsidy control in a given legal system and, more radically, about the goals of that system itself. The analysis does not only concentrate on the state of the law but critically looks forward, offering suggestions for new interpretations and law reform. The book focuses on the substantive provisions of the EC and WTO relating to what are identified by the author as the core properties of a notion of subsidy, i.e., a form of public action, the grant of an economic advantage and the ensuing impact on the competitive process. The current regulation in EC and WTO law is analysed, compared, and assessed in depth, and tested against a baseline represented by a notion of subsidy inserted in a subsidy regulation pursuing certain objectives. Drawing on the results of the comparative exercise, the book argues that both systems can learn valuable lessons from each other to achieve a greater coherence and a more efficient regulatory system.
W. Max. Corden
- Published in print:
- 1997
- Published Online:
- November 2003
- ISBN:
- 9780198775348
- eISBN:
- 9780191715471
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198775342.001.0001
- Subject:
- Economics and Finance, International
Expounds the normative theory of trade policy and sets out a framework for analysing trade and other intervention policies in the presence of domestic distortions. It includes discussion of static ...
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Expounds the normative theory of trade policy and sets out a framework for analysing trade and other intervention policies in the presence of domestic distortions. It includes discussion of static and dynamic arguments for protection, especially the infant industry argument, effects of trade policy on income distribution, monopoly, X‐efficiency, foreign investment, and capital accumulation, and the choice between tariffs and subsidies as methods of protection. Chapters especially written for the second edition cover the environment and trade policy, strategic trade policy, and the relationship between trade policy and the exchange rate. The book contains many diagrams and very little mathematics.Less
Expounds the normative theory of trade policy and sets out a framework for analysing trade and other intervention policies in the presence of domestic distortions. It includes discussion of static and dynamic arguments for protection, especially the infant industry argument, effects of trade policy on income distribution, monopoly, X‐efficiency, foreign investment, and capital accumulation, and the choice between tariffs and subsidies as methods of protection. Chapters especially written for the second edition cover the environment and trade policy, strategic trade policy, and the relationship between trade policy and the exchange rate. The book contains many diagrams and very little mathematics.
David M. Kreps
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283812
- eISBN:
- 9780191596568
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283814.003.0002
- Subject:
- Economics and Finance, Microeconomics
Argues that, for purposes of this book, game theory should be judged by the substantive insights it has (or has not) provided into real economic situations.
Argues that, for purposes of this book, game theory should be judged by the substantive insights it has (or has not) provided into real economic situations.
Mario Mazzocchi, W. Bruce Traill, and Jason F. Shogren
- Published in print:
- 2009
- Published Online:
- October 2011
- ISBN:
- 9780199213856
- eISBN:
- 9780191695902
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199213856.003.0006
- Subject:
- Economics and Finance, Public and Welfare
This final chapter summarizes the evidence and identifies remaining questions. It argues that obesity policy is as much a question of social choice as of biology. It gives the key points raised by ...
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This final chapter summarizes the evidence and identifies remaining questions. It argues that obesity policy is as much a question of social choice as of biology. It gives the key points raised by the book. It claims that obesity poses a modern day challenge to understanding human health and welfare and that it may be due to technological change. Obesity policy needs economics for risk assessment and management. It also offers that obesity cannot be changed by information policy alone but with a combination of fat taxes and thin subsidies.Less
This final chapter summarizes the evidence and identifies remaining questions. It argues that obesity policy is as much a question of social choice as of biology. It gives the key points raised by the book. It claims that obesity poses a modern day challenge to understanding human health and welfare and that it may be due to technological change. Obesity policy needs economics for risk assessment and management. It also offers that obesity cannot be changed by information policy alone but with a combination of fat taxes and thin subsidies.
Vaclav Smil
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195168754
- eISBN:
- 9780199783601
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168755.003.0004
- Subject:
- Economics and Finance, Economic History
Mechanization — a key trend of pre-WWI technical advances — intensified in all industrial sectors and reached new levels with automation and robotization after WWII. Major advances made in coal ...
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Mechanization — a key trend of pre-WWI technical advances — intensified in all industrial sectors and reached new levels with automation and robotization after WWII. Major advances made in coal mining, oil and gas extraction, and in key manufacturing sectors such as car making benefited not only from ingenious robotization, but also from new methods of organization and flexible production. Agriculture also became much less labor intensive thanks to new high energy subsidies for machines and agrochemicals (fertilizers, pesticides, insecticides).Less
Mechanization — a key trend of pre-WWI technical advances — intensified in all industrial sectors and reached new levels with automation and robotization after WWII. Major advances made in coal mining, oil and gas extraction, and in key manufacturing sectors such as car making benefited not only from ingenious robotization, but also from new methods of organization and flexible production. Agriculture also became much less labor intensive thanks to new high energy subsidies for machines and agrochemicals (fertilizers, pesticides, insecticides).
Paul Stoneman
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199572489
- eISBN:
- 9780191722257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572489.003.0012
- Subject:
- Business and Management, Innovation
This chapter considers policy issues. Given the potential benefits of soft innovation it is natural to consider whether government can speed up or extend such activity. However, this is not ...
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This chapter considers policy issues. Given the potential benefits of soft innovation it is natural to consider whether government can speed up or extend such activity. However, this is not necessarily welfare desirable. The real issue concerns whether markets will or will not, unaided, produce the welfare optimal outcome. The literature considered shows that this question cannot be answered irrefutably in either direction. Market failure is thus not a strong ground on which to base policy intervention. Alternatively, international comparisons of soft innovation performance may be used by governments as a basis for policy. The chapter shows that the UK is not the international leader in soft innovation. Looking at returns to the Community Innovation Survey provides some insight into barriers to innovations and may be argued to support certain policy interventions. There is also only limited evidence on the potential effectiveness of policies.Less
This chapter considers policy issues. Given the potential benefits of soft innovation it is natural to consider whether government can speed up or extend such activity. However, this is not necessarily welfare desirable. The real issue concerns whether markets will or will not, unaided, produce the welfare optimal outcome. The literature considered shows that this question cannot be answered irrefutably in either direction. Market failure is thus not a strong ground on which to base policy intervention. Alternatively, international comparisons of soft innovation performance may be used by governments as a basis for policy. The chapter shows that the UK is not the international leader in soft innovation. Looking at returns to the Community Innovation Survey provides some insight into barriers to innovations and may be argued to support certain policy interventions. There is also only limited evidence on the potential effectiveness of policies.
López Ramón and Michael A. Toman
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199298006
- eISBN:
- 9780191603877
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199298009.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter discusses relationships between the macro economy and economic policy, and the environmental and resource situation in developing countries. It focuses on the distortive effects of ...
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This chapter discusses relationships between the macro economy and economic policy, and the environmental and resource situation in developing countries. It focuses on the distortive effects of energy and resource subsidies, poorly managed monetary policy leading to exchange rate instability and high interest rates, and financial crises which often lead to too shortsighted policies and behavior regarding the management of environment and resources.Less
This chapter discusses relationships between the macro economy and economic policy, and the environmental and resource situation in developing countries. It focuses on the distortive effects of energy and resource subsidies, poorly managed monetary policy leading to exchange rate instability and high interest rates, and financial crises which often lead to too shortsighted policies and behavior regarding the management of environment and resources.
Robert Stavins
- Published in print:
- 2006
- Published Online:
- January 2007
- ISBN:
- 9780195189650
- eISBN:
- 9780199783694
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195189650.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This essay traces the history of market mechanisms and describes their theoretical advantages over prescriptive regulation. It gives an overview of the lessons learned about market instruments thus ...
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This essay traces the history of market mechanisms and describes their theoretical advantages over prescriptive regulation. It gives an overview of the lessons learned about market instruments thus far, among them that there is an ongoing need for both flexibility and simplicity and for more effective monitoring and enforcement. It argues that there remain important limitations to the success of market instruments, including that firms are not yet well equipped to fully utilize them. The chapter concludes with predictions about the conditions under which such instruments are most likely to succeed.Less
This essay traces the history of market mechanisms and describes their theoretical advantages over prescriptive regulation. It gives an overview of the lessons learned about market instruments thus far, among them that there is an ongoing need for both flexibility and simplicity and for more effective monitoring and enforcement. It argues that there remain important limitations to the success of market instruments, including that firms are not yet well equipped to fully utilize them. The chapter concludes with predictions about the conditions under which such instruments are most likely to succeed.
Hongli Feng, Catherine Kling, Lyubov Kurkalova, and Silvia Secchi
- Published in print:
- 2006
- Published Online:
- January 2007
- ISBN:
- 9780195189650
- eISBN:
- 9780199783694
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195189650.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This essay studies a very large and important example of an environmental subsidy program — the Conservation Reserve Program (CRP). The CRP was introduced in 1985. It investigates how much less ...
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This essay studies a very large and important example of an environmental subsidy program — the Conservation Reserve Program (CRP). The CRP was introduced in 1985. It investigates how much less efficient, if any, a command-and-control (CAC) form of regulation would have been. That is, it seeks to assess the policy as implemented relative to a fundamentally different form of regulation — CAC. It then studies the ex post performance of this incentive-based instrument. In so doing, it provides information on the degree to which market-based incentive programs, as they have actually been implemented, have or have not lived up to the original optimism with which economists viewed such instruments.Less
This essay studies a very large and important example of an environmental subsidy program — the Conservation Reserve Program (CRP). The CRP was introduced in 1985. It investigates how much less efficient, if any, a command-and-control (CAC) form of regulation would have been. That is, it seeks to assess the policy as implemented relative to a fundamentally different form of regulation — CAC. It then studies the ex post performance of this incentive-based instrument. In so doing, it provides information on the degree to which market-based incentive programs, as they have actually been implemented, have or have not lived up to the original optimism with which economists viewed such instruments.
Xiudian Dai
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199535026
- eISBN:
- 9780191715860
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199535026.003.0004
- Subject:
- Political Science, Comparative Politics, European Union
The Commission promotes a competitive technology and related industrial policy through its coordination Framework Programmes. Commission funding is concentrated on a variety of Information Society ...
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The Commission promotes a competitive technology and related industrial policy through its coordination Framework Programmes. Commission funding is concentrated on a variety of Information Society Technologies. This chapter examines its role through two case studies of advanced television broadcasting technologies projects: High Definition Television (HDTV) and Digital Video Broadcasting (DVB). Competing leadership candidates with the Commission for HDTV included the French and Dutch national governments and major firms based on government-industry collusion in the service of competitiveness. The HDTV flagship project to meet the Japanese and American challenge, supported by the Commission and Council of Ministers with subsidies, was a failure of European technology policy. The DVB firm-led consortium has by contrast been market-driven and successful without public subsidy.Less
The Commission promotes a competitive technology and related industrial policy through its coordination Framework Programmes. Commission funding is concentrated on a variety of Information Society Technologies. This chapter examines its role through two case studies of advanced television broadcasting technologies projects: High Definition Television (HDTV) and Digital Video Broadcasting (DVB). Competing leadership candidates with the Commission for HDTV included the French and Dutch national governments and major firms based on government-industry collusion in the service of competitiveness. The HDTV flagship project to meet the Japanese and American challenge, supported by the Commission and Council of Ministers with subsidies, was a failure of European technology policy. The DVB firm-led consortium has by contrast been market-driven and successful without public subsidy.
Francesca Carnevali
- Published in print:
- 2005
- Published Online:
- September 2006
- ISBN:
- 9780199257393
- eISBN:
- 9780191603846
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257396.003.0010
- Subject:
- Economics and Finance, Economic History
This chapter considers the reasons behind successive Italian governments’ decision to continue their support of small firms after 1945, and how this has shaped the structure of the economy. The ...
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This chapter considers the reasons behind successive Italian governments’ decision to continue their support of small firms after 1945, and how this has shaped the structure of the economy. The relationship between local banks and small firms is analysed further, considering the claim made by the literature that Italy’s banks present high levels of inefficiency.Less
This chapter considers the reasons behind successive Italian governments’ decision to continue their support of small firms after 1945, and how this has shaped the structure of the economy. The relationship between local banks and small firms is analysed further, considering the claim made by the literature that Italy’s banks present high levels of inefficiency.
Johan F. M. Swinnen
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199288915
- eISBN:
- 9780191603518
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199288917.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines how different reforms were chosen and implemented in various transition countries. It focuses on price and subsidy policy reform, property rights reform and farm restructuring, ...
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This chapter examines how different reforms were chosen and implemented in various transition countries. It focuses on price and subsidy policy reform, property rights reform and farm restructuring, and liberalization and the development of market institutions.Less
This chapter examines how different reforms were chosen and implemented in various transition countries. It focuses on price and subsidy policy reform, property rights reform and farm restructuring, and liberalization and the development of market institutions.
Johan F. M. Swinnen
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199288915
- eISBN:
- 9780191603518
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199288917.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter explains the effects of the different reforms which were chosen and implemented in various transition countries. It provides evidence on the effects of price and subsidy policy reform, ...
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This chapter explains the effects of the different reforms which were chosen and implemented in various transition countries. It provides evidence on the effects of price and subsidy policy reform, property rights reform and farm restructuring, liberalization and the development of market institutions, and on the effects of the interaction between these reforms.Less
This chapter explains the effects of the different reforms which were chosen and implemented in various transition countries. It provides evidence on the effects of price and subsidy policy reform, property rights reform and farm restructuring, liberalization and the development of market institutions, and on the effects of the interaction between these reforms.
Dan Breznitz
- Published in print:
- 2005
- Published Online:
- September 2007
- ISBN:
- 9780199275601
- eISBN:
- 9780191705823
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199275601.003.0004
- Subject:
- Business and Management, International Business
This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the ...
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This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the development of the local software industry was Israel's R&D capabilities, which are diffused throughout the innovation system with their source being the strong academic research apparatus. The chapter also argues that it was the conscious aim of the Israeli state to develop exactly such an industry, and shows that at critical times the state, through the OCS, started catalytic programs to spurred private technological entrepreneurship.Less
This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the development of the local software industry was Israel's R&D capabilities, which are diffused throughout the innovation system with their source being the strong academic research apparatus. The chapter also argues that it was the conscious aim of the Israeli state to develop exactly such an industry, and shows that at critical times the state, through the OCS, started catalytic programs to spurred private technological entrepreneurship.
Luca Rubini
- Published in print:
- 2009
- Published Online:
- May 2010
- ISBN:
- 9780199533398
- eISBN:
- 9780191714740
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199533398.003.0012
- Subject:
- Law, Public International Law, EU Law
This chapter examines the issue of the identification of the beneficiaries, i.e., the persons that benefit from the advantage granted through the subsidy or State aid. After a few introductory ...
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This chapter examines the issue of the identification of the beneficiaries, i.e., the persons that benefit from the advantage granted through the subsidy or State aid. After a few introductory remarks, two case-studies are used to show the complexities of this question. The first focuses on so-called ‘input’ or ‘upstream’ subsidies, the second on the identification issues in the context of the sale of companies or assets.Less
This chapter examines the issue of the identification of the beneficiaries, i.e., the persons that benefit from the advantage granted through the subsidy or State aid. After a few introductory remarks, two case-studies are used to show the complexities of this question. The first focuses on so-called ‘input’ or ‘upstream’ subsidies, the second on the identification issues in the context of the sale of companies or assets.
Jean Tirole
- Published in print:
- 2010
- Published Online:
- October 2017
- ISBN:
- 9780691145235
- eISBN:
- 9781400834648
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691145235.003.0002
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from ...
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This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from regulatory fundamentals to prudential implementation. The second part discusses some implications of recent events for financial sector regulation. It argues that to avoid a repetition of the financial crisis, we need both to change public policies that contributed to the crisis (particularly the mortgage crisis) and to institute financial reforms. Desirable reforms of public policy regarding real estate lending include promoting consumer protection and reducing subsidies. Financial regulation must also be international. The creation of supranational regulatory structures has become increasingly urgent in a world in which institutions and counterparties are truly international.Less
This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from regulatory fundamentals to prudential implementation. The second part discusses some implications of recent events for financial sector regulation. It argues that to avoid a repetition of the financial crisis, we need both to change public policies that contributed to the crisis (particularly the mortgage crisis) and to institute financial reforms. Desirable reforms of public policy regarding real estate lending include promoting consumer protection and reducing subsidies. Financial regulation must also be international. The creation of supranational regulatory structures has become increasingly urgent in a world in which institutions and counterparties are truly international.
Tommy H. Clausen
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199551552
- eISBN:
- 9780191720819
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199551552.003.0013
- Subject:
- Business and Management, Political Economy, Innovation
This chapter presents an empirical analysis of contemporary Norwegian innovation policy with a particular emphasis on research and development (R&D). It investigates whether and to what extent the ...
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This chapter presents an empirical analysis of contemporary Norwegian innovation policy with a particular emphasis on research and development (R&D). It investigates whether and to what extent the ‘national champions' strategy’ identified in the historical analysis in Chapter 4 persists in more recent policymaking. In the analysis, it is found that national champions are more inclined to get access to both development and research subsidies from Norwegian technology programs. The results also suggest that subsidies for ‘research’ within firms increase firm-financed R&D spending while subsidies for ‘development’ substitute such R&D.Less
This chapter presents an empirical analysis of contemporary Norwegian innovation policy with a particular emphasis on research and development (R&D). It investigates whether and to what extent the ‘national champions' strategy’ identified in the historical analysis in Chapter 4 persists in more recent policymaking. In the analysis, it is found that national champions are more inclined to get access to both development and research subsidies from Norwegian technology programs. The results also suggest that subsidies for ‘research’ within firms increase firm-financed R&D spending while subsidies for ‘development’ substitute such R&D.
Julian Le Grand and BILL New
- Published in print:
- 2015
- Published Online:
- October 2017
- ISBN:
- 9780691164373
- eISBN:
- 9781400866298
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691164373.001.0001
- Subject:
- Political Science, Public Policy
Should governments save people from themselves? Do governments have the right to influence citizens' behavior related to smoking tobacco, eating too much, not saving enough, drinking alcohol, or ...
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Should governments save people from themselves? Do governments have the right to influence citizens' behavior related to smoking tobacco, eating too much, not saving enough, drinking alcohol, or taking marijuana—or does this create a nanny state, leading to infantilization, demotivation, and breaches in individual autonomy? Looking at examples from both sides of the Atlantic and around the world, this book examines the justifications for, and the prevalence of, government paternalism and considers when intervention might or might not be acceptable. Building on developments in philosophy, behavioral economics, and psychology, the book explores the roles, boundaries, and responsibilities of the government and its citizens. It investigates specific policy areas, including smoking, saving for pensions, and assisted suicide. It then discusses legal restrictions on risky behavior, taxation of harmful activities, and subsidies for beneficial activities. The book pays particular attention to “nudge” or libertarian paternalist proposals that try to change the context in which individuals make decisions so that they make the right ones. It argues that individuals often display “reasoning failure”: an inability to achieve the ends that they set themselves. Such instances are ideal for paternalistic interventions—for though such interventions might impinge on autonomy, the impact can be outweighed by an improvement in well-being. Finally, the book rigorously considers whether the state should guide citizen decision making in positive ways and if so, how this should be achieved.Less
Should governments save people from themselves? Do governments have the right to influence citizens' behavior related to smoking tobacco, eating too much, not saving enough, drinking alcohol, or taking marijuana—or does this create a nanny state, leading to infantilization, demotivation, and breaches in individual autonomy? Looking at examples from both sides of the Atlantic and around the world, this book examines the justifications for, and the prevalence of, government paternalism and considers when intervention might or might not be acceptable. Building on developments in philosophy, behavioral economics, and psychology, the book explores the roles, boundaries, and responsibilities of the government and its citizens. It investigates specific policy areas, including smoking, saving for pensions, and assisted suicide. It then discusses legal restrictions on risky behavior, taxation of harmful activities, and subsidies for beneficial activities. The book pays particular attention to “nudge” or libertarian paternalist proposals that try to change the context in which individuals make decisions so that they make the right ones. It argues that individuals often display “reasoning failure”: an inability to achieve the ends that they set themselves. Such instances are ideal for paternalistic interventions—for though such interventions might impinge on autonomy, the impact can be outweighed by an improvement in well-being. Finally, the book rigorously considers whether the state should guide citizen decision making in positive ways and if so, how this should be achieved.
Geoffrey Owen
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199226009
- eISBN:
- 9780191710315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226009.003.0003
- Subject:
- Business and Management, Business History
The history of British industrial policy since the Second World War falls into two distinct periods, with the dividing line being the election of Margaret Thatcher as Prime Minister in May 1979. In ...
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The history of British industrial policy since the Second World War falls into two distinct periods, with the dividing line being the election of Margaret Thatcher as Prime Minister in May 1979. In the first period, an explicit objective was to create and support large companies in what were thought to be strategic industries, in the hope that they would hold their own in world markets against American, Japanese, and European competitors. Aerospace, automobiles, computers, and electronics were among the industries that were supported in this way, sometimes through government-induced mergers, sometimes through subsidies for research and development. These policies were based on wishful thinking about the link between size and international competitiveness, and there was a failure to recognise the difficulty of making large-scale mergers work. Most of the ‘national champions’ created in the 1960s and 1970s came to grief. Government intervention in industry was anathema to Margaret Thatcher's Conservative government, and industrial policy in the 1980s shifted towards horizontal, non-selective measures aimed at improving the business climate as a whole, not at promoting particular industries. Some elements of the old policy survived (for example, continuing support for the aircraft industry), but for the most part the government allowed the structure of industry to be determined by market forces. This implied, among other things, an enthusiastic welcome for foreign investment, even if it involved the take-over of large British industrial companies. When Labour returned to office in 1997, there was no return to the interventionism of the earlier post-war decades — no rescues of ‘lame ducks’, and no attempt to halt the decline of the manufacturing sector. While some observers believed that the absence of industrial policy had weakened the British economy, there was little political support for a change of direction.Less
The history of British industrial policy since the Second World War falls into two distinct periods, with the dividing line being the election of Margaret Thatcher as Prime Minister in May 1979. In the first period, an explicit objective was to create and support large companies in what were thought to be strategic industries, in the hope that they would hold their own in world markets against American, Japanese, and European competitors. Aerospace, automobiles, computers, and electronics were among the industries that were supported in this way, sometimes through government-induced mergers, sometimes through subsidies for research and development. These policies were based on wishful thinking about the link between size and international competitiveness, and there was a failure to recognise the difficulty of making large-scale mergers work. Most of the ‘national champions’ created in the 1960s and 1970s came to grief. Government intervention in industry was anathema to Margaret Thatcher's Conservative government, and industrial policy in the 1980s shifted towards horizontal, non-selective measures aimed at improving the business climate as a whole, not at promoting particular industries. Some elements of the old policy survived (for example, continuing support for the aircraft industry), but for the most part the government allowed the structure of industry to be determined by market forces. This implied, among other things, an enthusiastic welcome for foreign investment, even if it involved the take-over of large British industrial companies. When Labour returned to office in 1997, there was no return to the interventionism of the earlier post-war decades — no rescues of ‘lame ducks’, and no attempt to halt the decline of the manufacturing sector. While some observers believed that the absence of industrial policy had weakened the British economy, there was little political support for a change of direction.
Young‐Iob Chung
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780195325454
- eISBN:
- 9780199783908
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195325454.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter evaluates the economic impacts of the government's industrial and financial policies, which provided interest subsidies, wealth, and inflation windfalls to privileged businesses in terms ...
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This chapter evaluates the economic impacts of the government's industrial and financial policies, which provided interest subsidies, wealth, and inflation windfalls to privileged businesses in terms of production costs, profits, investments, sectoral growth, industrial organization, and savings. The chapter further evaluates the impact of resource allocation on macroeconomic disruptions, sectoral misallocations between privileged and unsupported businesses, manufacturing vs. service industries, heavy and chemical industries vs. light industries, and large vs. small businesses. Economic rent-seeking activities, cronyism and corruption, non-performing loans, financial burdens, the disciplining of financial intermediaries, and financial and corporate reforms in recent years are assessed. The chapter also asks: were the government's industrial and financial policies the optimal measures to achieve the industrialization and the expansion of the nation's economy? Who were the major beneficiaries of the government's industrial and financial policies? Did government control of financial institutions deprive the banks of incentive to improve efficiency? Finally, the chapter lists the future economic and financial challenges facing the country.Less
This chapter evaluates the economic impacts of the government's industrial and financial policies, which provided interest subsidies, wealth, and inflation windfalls to privileged businesses in terms of production costs, profits, investments, sectoral growth, industrial organization, and savings. The chapter further evaluates the impact of resource allocation on macroeconomic disruptions, sectoral misallocations between privileged and unsupported businesses, manufacturing vs. service industries, heavy and chemical industries vs. light industries, and large vs. small businesses. Economic rent-seeking activities, cronyism and corruption, non-performing loans, financial burdens, the disciplining of financial intermediaries, and financial and corporate reforms in recent years are assessed. The chapter also asks: were the government's industrial and financial policies the optimal measures to achieve the industrialization and the expansion of the nation's economy? Who were the major beneficiaries of the government's industrial and financial policies? Did government control of financial institutions deprive the banks of incentive to improve efficiency? Finally, the chapter lists the future economic and financial challenges facing the country.
