Freedom and Growth: Do Constitutions Matter?
AbstractThis 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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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 78 (1994)
Issue (Month): 3-4 (March)
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Web page: http://www.springerlink.com/link.asp?id=100332
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