IDEAS home Printed from https://ideas.repec.org/h/lum/prchap/09-11.html

Well-Being and Economic Freedoms in OECD

In: 12th LUMEN International Scientific Conference Rethinking Social Action. Core Values in Practice | RSACVP 2019 | 15-17 May 2019 | Iasi – Romania

Author

Listed:
  • Irina Georgescu

    (The Bucharest University of Economic Studies, Romania)

  • Jani Kinnunen

    (Ã…bo Akademi University, Turku, Finland)

Abstract

OECD countries represent advanced market economies. Well-being in OECD countries can be measured by Better Life Index (BLI). In this paper, firstly, two composite indices are built for BLI and Freedom Index (FI) based on principal component analyses of the 24 individual well-being variables and 10 economic freedom variables for 2013-2016. The purpose is to study the effect of the composite FI and the individual economic freedoms on the composite BLI. This is done by linear regressions between the indices and, separately, between individual freedoms and the BLI. Also, GDP per capita is included into regressions. Then, multiple correspondence analysis (MCA) is conducted on categorized 2016 data for further insights. The approach leads to several findings: countries in higher quartiles measured by BLI are related to higher freedom index; while GDP per capita explains about 51% (R2) of BLI using a univariate regression, the freedom index explains as much as 69%. Multiple correspondence analysis shows that countries belonging to the two highest quartiles, measured by BLI, are very similar and they are related to very high and high levels of freedoms and GDP, while the countries belonging to lowest and second lowest BLI quartiles form both clearly separate groups and are related to low freedoms and GDP and medium-level freedoms and GDP, respectively. Freedoms related to monetary and fiscal policies were not found significant in line with earlier literature suggesting that the policies can create well-being.

Suggested Citation

  • Irina Georgescu & Jani Kinnunen, 2019. "Well-Being and Economic Freedoms in OECD," Book chapters-LUMEN Proceedings, in: Camelia Ignatescu (ed.), 12th LUMEN International Scientific Conference Rethinking Social Action. Core Values in Practice | RSACVP 2019 | 15-17 May 2019 | Iasi – Romania, edition 1, volume 9, chapter 11, pages 108-125, Editura Lumen.
    • Handle: RePEc:lum:prchap:09-11
    DOI: https://doi.org/10.18662/lumproc.158
    as

    Download full text from publisher

    File URL: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings/article/view/167/163
    Download Restriction: no
    File URL: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings/article/view/167
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.18662/lumproc.158?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cebula, Richard J. & Clark, J.R. & Mixon, Franklin G., Jr., 2013. "The Impact of Economic Freedom on Per Capita Real GDP: A Study of OECD Nations," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(01).
    2. Lars Osberg & Andrew Sharpe, 2002. "An Index of Economic Well–Being for Selected OECD Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 291-316, September.
    3. Richard J. Cebula, 2013. "Which economic freedoms influence per capita real income?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(4), pages 368-372, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jani KINNUNEN & Irina GEORGESCU & Ane-Mari ANDRONICEANU, 2020. "Evaluating Governmental Responses To Covid-19 And The Implications For Tourism Industry," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 585-594, November.
    2. Irina GEORGESCU & Ane-Mari ANDRONICEANU & Jani KINNUNEN, 2020. "A Discriminant Analysis To The Quantification Of Human Development Index Under Economic Inequality," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 1053-1062, November.
    3. Ane-Mari Androniceanu & Irina Georgescu & Manuela Tvaronavičienė & Armenia Androniceanu, 2020. "Canonical Correlation Analysis and a New Composite Index on Digitalization and Labor Force in the Context of the Industrial Revolution 4.0," Sustainability, MDPI, vol. 12(17), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olalekan Charles Okunlola & Anthony E. Akinlo, 2021. "Does economic freedom enhance quality of life in Africa?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(3), pages 357-387, September.
    2. Man Liang & Shuwen Niu & Zhen Li & Wenli Qiang, 2019. "International Comparison of Human Development Index Corrected by Greenness and Fairness Indicators and Policy Implications for China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 1-24, February.
    3. Carola Grün & Stephan Klasen, 2003. "Growth, Income Distribution, and Well-Being: Comparisons across Space and Time," CESifo Working Paper Series 837, CESifo.
    4. Lars Osberg & Andrew Sharpe, 2014. "Measuring Economic Insecurity in Rich and Poor Nations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 53-76, May.
    5. Matthew D Rablen, 2012. "The promotion of local wellbeing: A primer for policymakers," Local Economy, London South Bank University, vol. 27(3), pages 297-314, May.
    6. Charles M. Beach & Ross Finnie & David Gray, 2003. "Earnings Variability and Earnings Instability of Women and Men in Canada: How Do the 1990s Compare to the 1980s?," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 41-64, January.
    7. Lars Osberg & Andrew Sharpe, 2011. "Moving from a GDP-Based to a Well-Being Based Metric of Economic Performance and Social Progress: Results from the Index of Economic Well-Being for OECD Countries, 1980-2009," CSLS Research Reports 2011-12, Centre for the Study of Living Standards.
    8. Suman Seth and Antonio Villar, 2017. "Measuring Human Development and Human Deprivations," OPHI Working Papers ophiwp110.pdf, Queen Elizabeth House, University of Oxford.
    9. Martínez Roget, F. & Murias Fernández, P. & Miguel Domínguez, J.C. De, 2005. "El análisis envolvente de datos en la construcción de indicadores sintéticos. Una aplicación a las provincias españolas/DEA Construction of Composite Indicators. An Application to the Spanish Province," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 23, pages 753-771, Diciembre.
    10. Shahnazi, Rouhollah & Dehghan Shabani, Zahra, 2021. "The effects of renewable energy, spatial spillover of CO2 emissions and economic freedom on CO2 emissions in the EU," Renewable Energy, Elsevier, vol. 169(C), pages 293-307.
    11. Marta Nečadová, 2012. "Is GDP an Appropriate Indicator of Economic Performance and Social Progress in the Context of Globalization? [Je HDP vhodným ukazatelem ekonomické výkonnosti a sociálního pokroku v podmínkách globalizace?]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2012(5), pages 3-23.
    12. Komlos, John & Baur, Marieluise, 2004. "From the tallest to (one of) the fattest: the enigmatic fate of the American population in the 20th century," Economics & Human Biology, Elsevier, vol. 2(1), pages 57-74, March.
    13. Khatiwada, Lila K., 2014. "Modeling and Explaining County-level Prosperity in the U.S," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    14. Schang, Laura & Hynninen, Yrjänä & Morton, Alec & Salo, Ahti, 2016. "Developing robust composite measures of healthcare quality – Ranking intervals and dominance relations for Scottish Health Boards," Social Science & Medicine, Elsevier, vol. 162(C), pages 59-67.
    15. Lars Osberg & Andrew Sharpe, 2003. "Human Well-being and Economic Well-being: What Values Are Implicit in Current Indices?," CSLS Research Reports 2003-04, Centre for the Study of Living Standards.
    16. Melanie Jones, 2004. "The Dynamic Benchmarking of Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 38(5), pages 493-504.
    17. Gloria Polinesi & Mariateresa Ciommi & Chiara Gigliarano, 2024. "Impact of COVID-19 on elderly population well-being: evidence from European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(6), pages 5201-5223, December.
    18. Jerzy Michalek & Nana Zarnekow, 2012. "Application of the Rural Development Index to Analysis of Rural Regions in Poland and Slovakia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 105(1), pages 1-37, January.
    19. Okereke, Obinna, 2024. "The Well-Being of Nigeria’s Rural Population: A Review of Literature," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(2).
    20. Lars Osberg, 2001. "Needs and Wants: What is Social Progress and How Should it be Measured," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • A3 - General Economics and Teaching - - Multisubject Collective Works
    • I2 - Health, Education, and Welfare - - Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lum:prchap:09-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Antonio Sandu (email available below). General contact details of provider: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.