The Guarantees of Freedom
AbstractHayek (1960) distinguishes the institutions of English freedom, which guarantee the independence of judges from political interference in the administration of justice, from those of American freedom, which allow judges to restrain law-making powers of the sovereign through constitutional review. We create a data base of constitutional rules in 71 countries that reflect these institutions of English and American freedom, and ask whether these rules predict economic and political freedom in a cross-section of countries. We find that the English institutions of judicial independence are strong predictors of economic freedom and weaker predictors of political freedom. The American institutions of checks and balances are strong predictors of political but not of economic freedom. Judicial independence explains half of the positive effect of common law legal origin on measures of economic freedom.
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Bibliographic InfoPaper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm261.
Date of creation: 01 Feb 2002
Date of revision:
Other versions of this item:
- Rafael La Porta & Florencio Lopez-de-Silanes & Cristian Pop-Eleches & Andrei Shleifer, 2002. "The Guarantees of Freedom," Harvard Institute of Economic Research Working Papers 1943, Harvard - Institute of Economic Research.
- Rafael La Porta & Florencio Lopez-de-Silane & Cristian Pop-Eleches & Andrei Shleifer, 2002. "The Guarantees of Freedom," NBER Working Papers 8759, National Bureau of Economic Research, Inc.
- N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
- P10 - Economic Systems - - Capitalist Systems - - - General
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
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