Subsidiarity Economic Cost The effort to harmonize rules across the EU helped spawn separatist political movements, including the largest one, Brexit. Now policymakers in Brussels are trying to dampen objections to the cause by espousing subsidiarity, including in the next version of the Common Agricultural Policy (CAP). However, a study by Yuriy Gorodnichenko (UC-Berkeley), Debora Revoltella and Christopher Weiss (European Investment Bank), and Jan Svejnar (Colombia University) reveals the high cost of a disjointed Europe. They identify the cross-firm spread in labor and capital productivity in EU countries as being twice that of the U.S., mostly caused by disparate national regulations and language barriers. The authors calculate that re...