A select replication of the Cecchini microeconomic methodology on the EFTA financial services sectors: a note and critique

A replication exercise was conducted on the Cecchini microeconomic approach to determine whether the methodology will promote economic gains in the European Free Trade Assn.'s financial services sector. Results show that the approach, which stresses that microeconomic gains can be realized through the removal of trade barriers and increased competition, can lead to inaccurate and irrelevant economic gain estimates.