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The Impact of Economic Freedom and Total Freedom on Gross State In-Migration: An Exploratory Study of the Great Recession Experience

Author

Listed:
  • Cebula, Richard
  • Foley, Maggie
  • Hall, Joshua

Abstract

Typically, the greater the degree of economic freedom, the more successfully and efficiently markets perform and the greater the prosperity created through private enterprise. These outcomes from greater freedom accelerate economic growth, which in turn creates opportunities for yet further success. It can also be argued that greater personal freedom promotes higher levels of utility for consumers in non-economic ways. Accordingly, the present study empirically investigates whether the prospects of greater economic freedom on the one hand and greater economic plus personal freedom, i.e., greater total freedom, on the other hand in any given state vis-à-vis other states act(s) to induce a greater influx of migrants. This empirical study of domestic U.S. migration during the Great Recession finds clear evidence that migrants prefer to move to those states affording higher levels of economic freedom and higher levels of total freedom.

Suggested Citation

  • Cebula, Richard & Foley, Maggie & Hall, Joshua, 2012. "The Impact of Economic Freedom and Total Freedom on Gross State In-Migration: An Exploratory Study of the Great Recession Experience," MPRA Paper 55270, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55270
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    File URL: https://mpra.ub.uni-muenchen.de/55270/1/MPRA_paper_55270.pdf
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    References listed on IDEAS

    as
    1. Dawson, John W., 2003. "Causality in the freedom-growth relationship," European Journal of Political Economy, Elsevier, vol. 19(3), pages 479-495, September.
    2. Conway, Karen Smith & Houtenville, Andrew J., 2001. "Elderly Migration and State Fiscal Policy: Evidence from the 1990 Census Migration Flows," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 103-24, March.
    3. Richard J. Cebula & J. R. Clark, 2013. "An extension of the Tiebout hypothesis of voting with one's feet: the Medicaid magnet hypothesis," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4575-4583, November.
    4. Cebula, Richard J., 2002. "Migration and the Tiebout-Tullock Hypothesis Revisited," The Review of Regional Studies, Southern Regional Science Association, vol. 32(1), pages 87-96, Winter/Sp.
    5. Chi, Guangqing & Voss, Paul, 2005. "Migration Decision-making: A Hierarchical Regression Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(2).
    6. Falaris, Evangelos M, 1979. "The Determinants of Internal Migration in Peru: An Economic Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 27(2), pages 327-341, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    gross state in-migration; the Great Recession; economic freedom; total freedom;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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