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On Legal Cooperation and the Dynamics of Legal Convergence

  • Bertrand Crettez
  • Bruno Deffains
  • Olivier Musy

In this paper, we study the dynamics of legal convergence and the comparison between the different instruments of legal convergence based on cooperative strategies (i.e., harmonization and unification) or not. To study these questions we use a model with two nation-states which is inspired in part by that used in Carbonara and Parisi (2008) where preferences of each nation-state are such that it is costly to change the law, but it is also costly to have a different legal system from the other nation-state. We show that legal unification could be achieved in the long-run through small step by step changes despite the existence of huge harmonization costs in the short run. We also show that legal cooperation is not always necessary to achieve legal convergence.

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Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2010-17.

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Length: 40 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:drm:wpaper:2010-17
Contact details of provider: Postal: 200 Avenue de la République, Bât. G - 92001 Nanterre Cedex
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  1. Ricardo Alonso & Wouter Dessein & Niko Matouschek, 2008. "When Does Coordination Require Centralization?," American Economic Review, American Economic Association, vol. 98(1), pages 145-79, March.
  2. Armour, John & Deakin, Simon & Sarkar, Prabirjit & Siems, Mathias & Singh, Ajit, 2007. "Shareholder protection and stockmarket development: an empirical test of the legal origins hypothesis," MPRA Paper 39055, University Library of Munich, Germany.
  3. Casella, Alessandra, 2001. "Product Standards and International Trade: Harmonization through Private Coalitions?," Kyklos, Wiley Blackwell, vol. 54(2-3), pages 243-64.
  4. Jenny Monheim & Marie Obidzinski, 2007. "Optimal discretion in asylum lawmaking," Working Papers of BETA 2007-31, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  5. Andrzej Baniak & Peter Grajzl, 2010. "Interjurisdictional Linkages and the Scope for Interventionist Legal Harmonization," CESifo Working Paper Series 3085, CESifo Group Munich.
  6. Garoupa, Nuno & Ogus, Anthony, 2003. "A Strategic Interpretation of Legal Transplants," CEPR Discussion Papers 4123, C.E.P.R. Discussion Papers.
  7. Bertrand Crettez & Régis Deloche, 2006. "On the unification of legal rules in the European Union," European Journal of Law and Economics, Springer, vol. 21(3), pages 203-214, May.
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