Macroeconomic Policy as Implicit Industrial Policy: Its Industry and Enterprise Effects

The effects of industrial policy are assessed at three levels in this volume: through the user cost of capital, through the effects of a macroeconomic model on the decisions of an enterprise, and through the effects of a macroeconomic model on the machine-tools industry via its major customer industries. The analytical approaches developed and applied here constitute an integrated approach to the assessment of generic industrial policies on industries and enterprises. The application of these tools provides a constructive alternative to the polemics that dominate the industrial-policy literature and public debate.