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An Empirical Note on Economic Freedom and Income Inequality

  • John Carter

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    I report estimates for a fixed-effects model of country-level Gini coefficients as a function of economic freedom along with relevant control variables. Gini coefficients are drawn from the UNU/WIDER World Income Inequality Database Version 2.0a, while economic freedom is measured by the Fraser Institute's Economic Freedom of the World index. Controls are included for per capita income, political structure, education, demographics, and industrial composition. Over a broad range of freedom, the estimated relation between economic freedom and income inequality is positive, statistically significant, but relatively inelastic. Copyright Springer Science + Business Media B.V. 2007

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    File URL: http://hdl.handle.net/10.1007/s11127-006-9078-0
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    Article provided by Springer in its journal Public Choice.

    Volume (Year): 130 (2007)
    Issue (Month): 1 (January)
    Pages: 163-177

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    Handle: RePEc:kap:pubcho:v:130:y:2007:i:1:p:163-177
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    9. Klaus Deininger & Lyn Squire, 1996. "A New Data Set Measuring Income Inequality," CEMA Working Papers 512, China Economics and Management Academy, Central University of Finance and Economics.
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