IDEAS home Printed from
   My bibliography  Save this article

Principles of Good Market Governance


  • L. Hancher
  • P. Larouche
  • S. Lavrijssen


This article discusses which legal principles of good economic governance should form the basis of market legislation and supervision. Respect for the principles will contribute to a good functioning regulatory framework which is likely to enhance business confidence and produce the kind of stability required for longterm investment to take place. Several case studies on access regulation illustrate how disrespect for the principles can hamper an effective realization of the goals of a legal framework for the liberalization of a network industry. The article concludes with some recommendations on how to improve the quality of legislation, practices and procedures that affect the market. It is argued that independent administrative authorities should be obliged to adopt a code of good market governance. The adoption of a code of good market governance will form an extra check on the exercise of discretionary powers and guarantees that the agency’s decisions are based on sound economic analysis and comply with the principles of predictability and consistency.

Suggested Citation

  • L. Hancher & P. Larouche & S. Lavrijssen, 2004. "Principles of Good Market Governance," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature, vol. 0(2), pages 339-374.
  • Handle: RePEc:ete:revbec:20040206

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Bovenberg, A. Lans & Graafland, Johan J. & de Mooij, Ruud A., 2000. "Tax reform and the Dutch labor market: an applied general equilibrium approach," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 193-214, October.
    2. Donders, Jan & Graafland, Johan, 1998. "CPB models and employment policy in the Netherlands," Economic Modelling, Elsevier, vol. 15(3), pages 341-356, July.
    3. Graafland, J.J. & Huizinga, F.H., 1998. "Taxes and benefits in a non-linear wage equation," MPRA Paper 21076, University Library of Munich, Germany.
    4. Draper, D.A.G., 2000. "Towards an econometric model for the Netherlands : Explaining unemployment," Other publications TiSEM 8d6f0572-d552-4ca2-9df3-6, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:revbec:20040206. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.