Université de Lausanne
Ecole des HEC
Département d'économétrie et d'économie politique

Jeudi 30 avril 2009, 13h00
Extranef, Dorigny, salle 126

Eric TOULEMONDE
(Facultés Universitaires Notre-Dame de la Paix, Namur, Belgique)

The principle of mutual recognition.
A source of divergence?

Abstract
To protect consumers, environment, ... local governments set numerous norms. These norms also act as barriers to trade because firms must adapt their products to local markets. The principle of mutual recognition address the problem by ensuring that products lawfully manufactured in one State are acceptable without adaptation in another State. The principle shifts the transaction costs of adapting to several norms from firms to consumers. It is beneficial for larger countries but at the cost of increased disparities with smaller countries. Moreover two countries with identical sizes and qualitatively similar norms may end up with a different number of firms.

Web site of the seminar (with paper online): http://www.hec.unil.ch/deep/evenements-english/e-sem-all-2008-09.htm