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Who Benefits from Economic Freedom? Unraveling the Effect of Economic Freedom on Subjective Well-Being

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  • Gehring, Kai
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    Abstract

    Who benefits from economic freedom? Results from a panel of 86 countries over the 1990–2005 period suggest that overall economic freedom has a significant positive effect on subjective well-being. Its dimensions legal security and property rights, sound money, and regulation are in particular strong predictors of higher well-being. The overall positive effect is not affected by socio-demographics; the effects of individual dimensions vary, however. Developing countries profit more from higher economic freedom, in particular from reducing the regulatory burden. Culture moderates the effect: societies that are more tolerant and have a positive attitude toward the market economy profit the most.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 50 (2013)
    Issue (Month): C ()
    Pages: 74-90

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    Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:74-90

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: economic freedom; happiness; life satisfaction; government size; institutions;

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    Cited by:
    1. Bjornskov, Christian & Dreher, Axel & Fischer, Justina AV & Schnellenbach, Jan, 2010. "Inequality and happiness: When perceived social mobility and economic reality do not match," MPRA Paper 25826, University Library of Munich, Germany.

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