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Economic Freedom and Life Satisfaction: A Cross Country Analysis

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Author Info

  • Graafland, J.J.
  • Compen, B.

    (Tilburg University, Center for Economic Research)

Abstract

Abstract: This paper estimates the relationship between various sub-indicators of economic freedom and life satisfaction for 122 countries. The estimation results show that life satisfaction is positively related to the quality of the legal system and protection of property rights. For poor countries, freedom of trade fosters life satisfaction as well. Life satisfaction is independent from the size of the government and sound money and tends to be negatively related to low regulation. If the relationship between life satisfaction and economic freedom is controlled for income per capita, life satisfaction is independent from economic freedom. This indicates that the relationship between life satisfaction and economic freedom is mediated by income per capita.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2012-038.

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Date of creation: 2012
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Handle: RePEc:dgr:kubcen:2012038

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Web page: http://center.uvt.nl

Related research

Keywords: economic freedom; free trade; government size; income per capita; life satisfaction; regulation; respect of private property; sound money;

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  1. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
  2. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
  3. Berggren, Niclas & Jordahl, Henrik, 2005. "Free to Trust? Economic Freedom and Social Capital," Ratio Working Papers 64, The Ratio Institute.
  4. Christian Bjørnskov & Nicolai Foss, 2008. "Economic freedom and entrepreneurial activity: Some cross-country evidence," Public Choice, Springer, vol. 134(3), pages 307-328, March.
  5. Blanchflower, David G; Oswald, Andrew, 2011. "International Happiness," CAGE Online Working Paper Series 39, Competitive Advantage in the Global Economy (CAGE).
  6. Lorenz Blume & Stefan Voigt, 2007. "The Economic Effects of Human Rights," Kyklos, Wiley Blackwell, vol. 60(4), pages 509-538, November.
  7. Berggren, Niclas, 1999. " Economic Freedom and Equality: Friends or Foes?," Public Choice, Springer, vol. 100(3-4), pages 203-23, September.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Freedom vs happiness
    by chris dillow in Stumbling and Mumbling on 2012-05-28 13:48:18
  2. Freedom, well-being & capitalism
    by chris dillow in Stumbling and Mumbling on 2012-07-29 12:03:31
  3. Why was Hobsbawm wrong?
    by chris dillow in Stumbling and Mumbling on 2012-10-02 13:03:20

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