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Theory and evidence on economic freedom and economic growth: A comment

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Author Info
Joshua Hall () (Beloit College)
Robert Lawson () (Auburn University)

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Abstract

Altman (2007) examines the impact of economic freedom, including its various component parts, on aggregate economic performance across countries. He claims that some of the component parts of economic freedom, measured primarily with the Economic Freedom of the World index, are correlated positively with higher levels of per capita income and growth while others are not. He also attempts to identify "threshold effects" within the data that indicate differential impacts of economic freedom on economic performance at different levels. Although both questions are worthwhile, ultimately his efforts are unconvincing for both theoretical and empirical reasons which we discuss.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume15/EB-08O00006A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 15 (2008)
Issue (Month): 18 ()
Pages: 1-6
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Handle: RePEc:ebl:ecbull:v:15:y:2008:i:18:p:1-6

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Related research
Keywords: economic freedom; economic growth;

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Find related papers by JEL classification:
O0 - Economic Development, Technological Change, and Growth - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Jac C. Heckelman, 2000. "Economic Freedom and Economic Growth: A Short-run Causal Investigation," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 71-91, May. [Downloadable!]
  2. Andreas Bergh, 2006. "Is the Swedish Welfare State A Free Lunch?," Econ Journal Watch, Atlas Economic Research Foundation, vol. 3(2), pages 210-235, May. [Downloadable!]
  3. Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Blackwell Publishing, vol. 20(2), pages 157-191, 04. [Downloadable!] (restricted)
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  4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Konstantinos Angelopoulos & Apostolis Philippopoulos & Efthymios Tsionas, 2007. "Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample," Working Papers 2007_30, Department of Economics, University of Glasgow. [Downloadable!]
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  6. Heckelman, Jac C & Stroup, Michael D, 2000. "Which Economic Freedoms Contribute to Growth?," Kyklos, Blackwell Publishing, vol. 53(4), pages 527-44.
  7. Morris Altman, 2008. "How much economic freedom is necessary for economic growth? Theory and evidence," Economics Bulletin, Economics Bulletin, vol. 15(2), pages 1-20. [Downloadable!]
  8. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Blackwell Publishing, vol. 59(2), pages 141-169, 05. [Downloadable!] (restricted)
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  9. Dawson, John W., 2003. "Causality in the freedom-growth relationship," European Journal of Political Economy, Elsevier, vol. 19(3), pages 479-495, September. [Downloadable!] (restricted)
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  10. Robert A. Lawson, 2006. "On Testing the Connection between Economic Freedom and Growth," Econ Journal Watch, Atlas Economic Research Foundation, vol. 3(3), pages 398-406, September. [Downloadable!]
  11. Peter H. Lindert, 2003. "Why the Welfare State Looks Like a Free Lunch," NBER Working Papers 9869, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tudorel ANDREI & Ani MATEI & Ion Gh. ROSCA, 2009. "The Corruption - An Economic and Social Analysis," Economics Books, The Economica Publishing House, edition 1, volume 1, number 03, Winter. [Downloadable!]
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