Lie algebras whose derivation algebras are simple

It is well known that a finite-dimensional Lie algebra over a field of characteristic zero is simple exactly when its derivation algebra is simple. In this paper we characterize those Lie algebras of arbitrary dimension over any field that have a simple derivation algebra. As an application we classify the Lie algebras that have a complete simple derivation algebra and are either finite-dimensional over an algebraically closed field of prime characteristic p>3 or Z-graded of finite growth over an algebraically closed field of characteristic zero.