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Le financement public du secteur de la défense, une source d'inefficacité

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Abstract

Continental European countries used to finance defence firms with public money. In the last few years, many governments aimed at implementing a hands-off policy towards the defence sector, which implies a gradual transition from public to private funding. This paper argues that the absence of long term relationships between defence firms and private investors may block this change.

Suggested Citation

  • Besancenot, Damien & Vranceanu, Radu, 2005. "Le financement public du secteur de la défense, une source d'inefficacité," ESSEC Working Papers DR 05008, ESSEC Research Center, ESSEC Business School.
    • Handle: RePEc:ebg:essewp:dr-05008
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    References listed on IDEAS

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    1. Carlos Pestana Barros, 2004. "Measuring performance in defense-sector companies in a small NATO member country," Journal of Economic Studies, Emerald Group Publishing, vol. 31(2), pages 112-128, May.
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    4. Goyal, Vidhan K. & Lehn, Kenneth & Racic, Stanko, 2002. "Growth opportunities and corporate debt policy: the case of the U.S. defense industry," Journal of Financial Economics, Elsevier, vol. 64(1), pages 35-59, April.
    5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    6. Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 651-666.
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    More about this item

    Keywords

    Defense sector; Private funds; Defense industrial policy; Asymmetric information;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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