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Who Benefits from Economic Freedom? Unraveling the Effect of Economic Freedom on Subjective Well-Being

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  • Gehring, Kai

Abstract

Who benefits from economic freedom? Results from a panel of 86 countries over the 1990–2005 period suggest that overall economic freedom has a significant positive effect on subjective well-being. Its dimensions legal security and property rights, sound money, and regulation are in particular strong predictors of higher well-being. The overall positive effect is not affected by socio-demographics; the effects of individual dimensions vary, however. Developing countries profit more from higher economic freedom, in particular from reducing the regulatory burden. Culture moderates the effect: societies that are more tolerant and have a positive attitude toward the market economy profit the most.

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  • Gehring, Kai, 2013. "Who Benefits from Economic Freedom? Unraveling the Effect of Economic Freedom on Subjective Well-Being," World Development, Elsevier, vol. 50(C), pages 74-90.
    • Handle: RePEc:eee:wdevel:v:50:y:2013:i:c:p:74-90
    DOI: 10.1016/j.worlddev.2013.05.003
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