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An Ordinal Ranking of Economic Institutions

Author

Listed:
  • Scott Beaulier

    (Arizona State University, W.P. Carey School of Business)

  • Robert Elder

    (Beloit College, Department of Economics)

  • Cheryl Han

    (Beloit College, Department of Economics)

  • Joshua C. Hall

    (West Virginia University, College of Business and Economics)

Abstract

We provide the first ranking of countries’ economic institutions using an ordinal methodology. Using the five areas of the Fraser Institute’s Economic Freedom of the World (EFW) Index, we find that final rankings of a country’s institutions are sensitive to the importance-ordering of Area 1 (Size of Government). When Areas 2-5 are in the most important position, we find that there is no significant difference between the EFW rankings and our rankings. When Area 1 is placed in the most important position, however, a number of European countries with large welfare states but good governance do poorly.

Suggested Citation

  • Scott Beaulier & Robert Elder & Cheryl Han & Joshua C. Hall, 2015. "An Ordinal Ranking of Economic Institutions," Working Papers 15-12, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:15-12
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    References listed on IDEAS

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    1. Steven B. Caudill & Fernando C. Zanella & Franklin G. Mixon, Jr., 2000. "Is Economic Freedom One Dimensional? A Factor Analysis of Some Common Measures of Economic Freedom," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(1), pages 17-40, June.
    2. Jamie Bologna & Joshua C. Hall, 2014. "Economic Freedom Research: Some Comments and Suggestions," Working Papers 14-23, Department of Economics, West Virginia University.
    3. Sturm, Jan-Egbert & Leertouwer, Erik & de Hann, Jakob, 2002. "Which Economic Freedoms Contribute to Growth? A Comment," Kyklos, Wiley Blackwell, vol. 55(3), pages 403-416.
    4. Joshua C. Hall & Robert A. Lawson, 2014. "Economic Freedom Of The World: An Accounting Of The Literature," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 1-19, January.
    5. Voigt, Stefan, 2013. "How (Not) to measure institutions," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 1-26, March.
    6. Shirley, Mary M., 2013. "Measuring institutions: how to be precise though vague," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 31-33, March.
    7. Joshua Hall & David Yu, 2012. "Ranking the Economic Freedom of North America using dominetrics," Economics Bulletin, AccessEcon, vol. 32(3), pages 1949-1961.
    8. King Banaian & Bryan Roberts (ed.), 2008. "The Design and Use of Political Economy Indicators," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-61662-2, December.
    9. Jan–Egbert Sturm & Erik Leertouwer & Jakob de Haan, 2002. "Which Economic Freedoms Contribute to Growth? A Comment," Kyklos, Wiley Blackwell, vol. 55(3), pages 403-416, August.
    10. Heckelman, Jac C & Stroup, Michael D, 2000. "Which Economic Freedoms Contribute to Growth?," Kyklos, Wiley Blackwell, vol. 53(4), pages 527-544.
    11. Voigt, Stefan, 2013. "How (not) to measure institutions: a reply to Robinson and Shirley," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 35-37, March.
    12. AfDB AfDB, . "AfDB Group Annual Report 2008," Annual Report, African Development Bank, number 64 edited by Koua Louis Kouakou.
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    Cited by:

    1. Joshua Hall & John Levendis & Alexandre R. Scarcioffolo, 2020. "The Efficient Corruption Hypothesis and the Dynamics Between Economic Freedom, Corruption, and National Income," Journal of Developing Areas, Tennessee State University, College of Business, vol. 54(3), pages 161-175, July-Sept.
    2. Joshua C. Hall & Donald J. Lacombe & Timothy M. Shaughnessy, 2019. "Economic Freedom And Income Levels Across U.S. States: A Spatial Panel Data Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 37(1), pages 40-49, January.
    3. Wu, Dengsheng & Li, Jing & Lu, Xiaoli & Li, Jianping, 2018. "Journal editorship index for assessing the scholarly impact of academic institutions: An empirical analysis in the field of economics," Journal of Informetrics, Elsevier, vol. 12(2), pages 448-460.

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    More about this item

    Keywords

    economic freedom; ordinal; net dominance metric;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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