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Economic Freedom and Real Income

Author

Listed:
  • Foley, Maggie
  • Clark, J.R.

Abstract

This article further investigates the critical relationship between economic freedom and real income levels. Treating member nations of the OECD as de facto economic and political regions, the estimations in this empirical study all provide strong support for the three hypotheses considered here: (1) the higher the overall degree of economic freedom, the higher the per capita real income level; (2) the higher the level of regulatory quality, the higher the level of per capita real income; and (3) the higher the tax burden, expressed as a percent of GDP, the lower the level of per capita real income.

Suggested Citation

  • Foley, Maggie & Clark, J.R., 2016. "Economic Freedom and Real Income," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(01).
    • Handle: RePEc:ags:jrapmc:244625
    DOI: 10.22004/ag.econ.244625
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    References listed on IDEAS

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    1. Jac C. Heckelman, 2000. "Economic Freedom and Economic Growth: A Short-run Causal Investigation," Journal of Applied Economics, Universidad del CEMA, vol. 3, pages 71-91, May.
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    14. Bennett, Daniel L. & Vedder, Richard K., 2013. "A Dynamic Analysis of Economic Freedom and Income Inequality in the 50 U.S. States: Empirical Evidence of a Parabolic Relationship," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(01).
    15. Belasen, Ariel R. & Hafer, R.W., 2013. "Do Changes in Economic Freedom affect Well-Being?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(01).
    16. Ashby, Nathan J. & Bueno, Avilia & Martinez, Deborah, 2015. "Economic Freedom and Economic Development in the Mexican States," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(01).
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    Cited by:

    1. Joshua C. Hall & Donald J. Lacombe & Timothy M. Shaughnessy, 2019. "Economic Freedom And Income Levels Across U.S. States: A Spatial Panel Data Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 37(1), pages 40-49, January.

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