Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean

  title={Soft budget constraints and regional industrial policy: reinterpreting the rise and fall of DeLorean},
  author={Graham Brownlow},
  journal={Cambridge Journal of Economics},
The rise and fall of De Lorean Motor Cars Limited (DMCL) has been traditionally interpreted as the result either of John De Lorean´s psychological flaws or as confirming the supposedly inherent weaknesses in activist industrial policy. However, when the episode is examined in more detail, neither of these interpretations is compelling. This paper´s reinterpretation draws on a range of archival evidence, much of it previously unreleased. The concept of Soft Budget Constraints (SBCs), as… Expand
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