Joseph E. Stiglitz and Bruce Greenwald

May 2012


Industrial policies — meaning policies by which governments attempt to shape the sectoral allocation of the economy – are back in fashion, and rightly so. The major insight of welfare economics of the past fifty years is that markets by themselves in general do not result in (constrained) Paretoefficient outcomes (Greenwald and Stiglitz, 1986).

View the full paper here: Industrial Policies, the Creation of a Learning Society, and Economic