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Economic Freedom, Government Policy and the Trade-Off between Equity and Economic Growth

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  • Scully, Gerald W
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    Abstract

    This study investigates the role that economic freedom plays in economic growth and in the distribution in market income, the role of government policy in advancing economic progress and in promoting income equality, and the effect that the rate of economic progress has on the distribution of market income. Structural and reduced form models are estimated that reveal that economic freedom promotes both economic growth and equity, and that there is a positive but relatively small trade-off between growth and income inequality. Copyright 2002 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Public Choice.

    Volume (Year): 113 (2002)
    Issue (Month): 1-2 (October)
    Pages: 77-96

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    Handle: RePEc:kap:pubcho:v:113:y:2002:i:1-2:p:77-96

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    Cited by:
    1. Martin Gassebner & Noel Gaston & Michael Lamla, 2007. "The Inverse Domino Effect: Are Economic Reforms Contagious?," Development Research Unit Working Paper Series 31-07, Monash University, Department of Economics.
    2. Nathan Ashby & Russell Sobel, 2008. "Income inequality and economic freedom in the U.S. states," Public Choice, Springer, vol. 134(3), pages 329-346, March.
    3. Sal AMIRKHALKHALI & Atul A. DAR, 2012. "On Explaining Inter-Country Differences in Economic Growth Rates of OECD countries for 1996-2008: Does Regulatory Quality Matter," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).
    4. Bjørnskov, Christian, 2004. "Inequality, Tolerance, and Growth," Working Papers 04-8, University of Aarhus, Aarhus School of Business, Department of Economics.
    5. Apergis, Nicholas & Dincer, Oguzhan C. & Payne, James E., 2012. "Live free or bribe: On the causal dynamics between economic freedom and corruption in U.S. states," European Journal of Political Economy, Elsevier, vol. 28(2), pages 215-226.
    6. Indra Soysa & Krishna Vadlammanati, 2013. "Do pro-market economic reforms drive human rights violations? An empirical assessment, 1981–2006," Public Choice, Springer, vol. 155(1), pages 163-187, April.
    7. Fung, Michael K., 2009. "Financial development and economic growth: Convergence or divergence?," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 56-67, February.
    8. Gehring, Kai, 2013. "Who Benefits from Economic Freedom? Unraveling the Effect of Economic Freedom on Subjective Well-Being," World Development, Elsevier, vol. 50(C), pages 74-90.
    9. Judit Kapás & Pál Czeglédi, 2007. "Economic Freedom: Theory First, Empiricism After," ICER Working Papers 10-2007, ICER - International Centre for Economic Research.
    10. Bergh, Andreas & Nilsson, Therese, 2010. "Do liberalization and globalization increase income inequality?," European Journal of Political Economy, Elsevier, vol. 26(4), pages 488-505, December.
    11. Chortareas, Georgios E. & Girardone, Claudia & Ventouri, Alexia, 2013. "Financial freedom and bank efficiency: Evidence from the European Union," Journal of Banking & Finance, Elsevier, vol. 37(4), pages 1223-1231.
    12. Kešeljević, Aleksandar & Spruk, Rok, 2013. "Global distribution and dynamics of economic freedom: Non-parametric approach," Economic Modelling, Elsevier, vol. 33(C), pages 560-571.
    13. Doucouliagos, Chris & Ulubasoglu, Mehmet Ali, 2006. "Economic freedom and economic growth: Does specification make a difference?," European Journal of Political Economy, Elsevier, vol. 22(1), pages 60-81, March.
    14. Gehring, Kai, 2012. "Benefit or burden? Unraveling the effect of economic freedom on subjective well-being," Working Papers 0531, University of Heidelberg, Department of Economics.
    15. Joshua Hall, 2013. "Joseph Shaanan: Economic freedom and the American dream," Public Choice, Springer, vol. 155(3), pages 565-567, June.

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