Canton, E., Ciriaci, D. & Solera, I. (2014) “The Economic Impact of Professional Services Liberalisation“, European Economy. Economic Papers. 533. September 2014
Competition in professional services is, in some occasions, hindered by excessive regulation. This may constrain business dynamics (entry and exit of firms) and create inefficiencies and excessive rents. To improve market performance in those professional services generally regulated, several EU countries have reduced regulatory restrictions regarding the entry into and exercise of these professions. This study is an attempt to evaluate the effects of regulatory barriers in four of them, i.e. legal, accounting, architectural and engineering activities in the EU over the period 2008-2011. It is found that less strict regulation improves their allocative efficiency and reduces the observed larger-than-average profitability, through intensified business dynamics.
Relevant posts:
- Connell, W. (2014) Economic Impact of Late Payments, European Commission – European Economy, Economic Papers 531| September 2014.
- Schwan, A. & Sail, Ε. (2013) “Assessing the economic and budgetary impact of linking retirement ages and pension benefits to increases in longevity”, European Economy, Economic Papers, N. 512.
- Tridico, P., (2013) “The impact of the economic crisis on EU labour markets: A comparative perspective“, International Labour Review, Vol. 152, N.2, pp. 175-190.