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A distributional analysis of the benefits of economic freedom

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  • Compton, Ryan A.
  • Giedeman, Daniel C.
  • Hoover, Gary A.

Abstract

Using US state-level economic freedom measures, we investigate the extent that changes in economic freedom affect US State income growth. More importantly, we study how this effect differs across income quintiles, allowing us to address the particularly timely question of who benefits from increases in economic freedom and who does not. Our results indicate that while increases in economic freedom positively contribute to income growth, the strength of this effect differs across quintiles.

Suggested Citation

  • Compton, Ryan A. & Giedeman, Daniel C. & Hoover, Gary A., 2014. "A distributional analysis of the benefits of economic freedom," European Journal of Political Economy, Elsevier, vol. 33(C), pages 121-133.
  • Handle: RePEc:eee:poleco:v:33:y:2014:i:c:p:121-133
    DOI: 10.1016/j.ejpoleco.2013.12.001
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    References listed on IDEAS

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    Cited by:

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    5. Vogel, Lukas, 2017. "Structural reforms at the zero bound," European Journal of Political Economy, Elsevier, vol. 48(C), pages 74-90.
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    7. Joshua C. Hall & Brad R. Humphreys & Jane E. Ruseski, 2015. "Economic Freedom, Race, and Health Disparities: Evidence from US States," Working Papers 15-43, Department of Economics, West Virginia University.
    8. Hans Pitlik & Martin Rode, 2014. "Free to Choose? Economic Freedom, Relative Income, and Life Control Perceptions," WIFO Working Papers 482, WIFO.
    9. Joshua C. Hall & Brad R. Humphreys & Jane E. Ruseski, 2015. "Economic Freedom and Participation in Physical Activity," Working Papers 15-17, Department of Economics, West Virginia University.
    10. repec:bla:coecpo:v:35:y:2017:i:2:p:358-372 is not listed on IDEAS
    11. Faria, Hugo J. & Montesinos-Yufa, Hugo M. & Morales, Daniel R. & Navarro, Carlos E., 2016. "Unbundling the roles of human capital and institutions in economic development," European Journal of Political Economy, Elsevier, vol. 45(S), pages 108-128.

    More about this item

    Keywords

    Inequality; Poverty; Regulation; Protective/productive government; Freedom;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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