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Freedom and Growth: Do Constitutions Matter?

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Author Info
 De Vanssay, Xavier
Spindler, Z A

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Abstract

This paper uses an augmented Solow model with cross section data, to measure the effect on per-capita income of (1) the entrenchment of various rights in a country's constitution and (2) the level of economic freedom in a country, broadly construed. The results suggest that entrenchment, per se, of any single right seldom has a significant general economic effect, while the effect of economic freedom is significant and substantial. The paper then considers whether such evidence could support the proposition that 'constitutions do not matter.' While it concludes otherwise, it does caution against incurring excessive negotiation costs to obtain entrenchment of a comprehensive 'wish list' of rights. Copyright 1994 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 78 (1994)
Issue (Month): 3-4 (March)
Pages: 359-72
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Handle: RePEc:kap:pubcho:v:78:y:1994:i:3-4:p:359-72

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  1. Polimeni, John M. & Iorgulescu Polimeni, Raluca & Trees, W. Scott, 2007. "Extending The Augmented Solow Growth Model To Explain Transitional Economies," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 65-76, March. [Downloadable!]
  2. Carlsson, Fredrik & Lundström, Susanna, 2001. "Economic Freedom and Growth:Decomposing the Effects," Working Papers in Economics 33, Göteborg University, Department of Economics. [Downloadable!]
    Other versions:
  3. Tobias Knedlik & Franz Kronthaler, 2006. "Forced to Freedom? Empirical relations between aid and economic freedom," IWH Discussion Papers 8-06, Halle Institute for Economic Research. [Downloadable!]
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  4. Boockmann, Bernhard & Dreher, Axel, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," ZEW Discussion Papers 02-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  5. Aron, Janine, 2000. "Growth and Institutions: A Review of the Evidence," World Bank Research Observer, Oxford University Press, vol. 15(1), pages 99-135, February. [Downloadable!]
  6. Lundström, Susanna, 2002. "Decomposed Effects of Democracy on Economic Freedom," Working Papers in Economics 74, Göteborg University, Department of Economics. [Downloadable!]
  7. 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!]
  8. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute. [Downloadable!]
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