Competitiveness, Subsidiarity and Industrial Policy by Pat Devine

By Pat Devine

What does competitiveness suggest? in recent times, dialogue of monetary coverage has develop into ruled by way of the suggestion of competitiveness. during this quantity a bunch of best economists discover the problem via cross-country comparisons and via unmarried nation case stories. additionally they research: * the connection among competitiveness and group goals * the co-existence of range, subsidiarity and european business coverage * the influence of ecu expansion and extra integration

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Extra resources for Competitiveness, Subsidiarity and Industrial Policy (Industrial Economic Strategies for Europe)

Sample text

Output is . under profit maximization. Welfare maximization would yield a higher output, namely xg=c2(α−c1)/(c2−b2). The unit costs are and thus higher in a welfare maximizing firm. The analysis can be reinterpreted to let stand for quality in general, in which case a private monopoly would under-provide both quality and quantity. However, there may be cost differences even when capacity is not related to quality and hence does not shift demand. In Willner (1992, 1994c), a welfare-maximizing firm in a mixed oligopoly would choose a capacity level that gives it higher unit costs than its private competitors.

This emerging framework for Community support for local community initiatives offers much potential scope for local communities to define their own objectives. However, tensions and contradictions remain. First, the success stories —the industrial districts such as Emilia-Romagna and Baden-Württemburg—are historically evolved organic communities and their experiences are unlikely to be readily transferable. Furthermore, it is still unclear whether the success of these industrial districts will turn out to have been transitory, as the dominant transnational corporations assert their power and competitive strength, or whether they have achieved a permanent structural transformation.

Sinclair, P. (1993) ‘World Trade, Protectionist Follies, and Europe’s Options for the Future’, Oxford Review of Economic Policy, Autumn. Singh, A. ’, Cambridge Journal of Economics. Willner, J. (1994) ‘Competitiveness, Subsidiarity and Social Objectives: Issues for European Industrial Strategy’, paper presented at the 1994 Crete Workshop on Competitiveness, Subsidiarity and Objectives. 2 SOCIAL OBJECTIVES, MARKET RULE AND PUBLIC POLICY The case of ownership Johan Willner INTRODUCTION The public sector is now under challenge as a provider of both private and collective goods.

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