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A distributional analysis of the benefits of economic freedom

Author

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  • Compton, Ryan A.
  • Giedeman, Daniel C.
  • Hoover, Gary A.

Abstract

Using US state-level economic freedom measures, we investigate the extent that changes in economic freedom affect US State income growth. More importantly, we study how this effect differs across income quintiles, allowing us to address the particularly timely question of who benefits from increases in economic freedom and who does not. Our results indicate that while increases in economic freedom positively contribute to income growth, the strength of this effect differs across quintiles.

Suggested Citation

  • Compton, Ryan A. & Giedeman, Daniel C. & Hoover, Gary A., 2014. "A distributional analysis of the benefits of economic freedom," European Journal of Political Economy, Elsevier, vol. 33(C), pages 121-133.
    • Handle: RePEc:eee:poleco:v:33:y:2014:i:c:p:121-133
    DOI: 10.1016/j.ejpoleco.2013.12.001
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    Cited by:

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    2. Graafland, Johan, 2023. "Economic freedom and life satisfaction: A moderated mediation model with individual autonomy and national culture," European Journal of Political Economy, Elsevier, vol. 79(C).
    3. Andreas Bergh & Christian Bjørnskov, 2021. "Does economic freedom boost growth for everyone?," Kyklos, Wiley Blackwell, vol. 74(2), pages 170-186, May.
    4. Coates, Dennis & Mirkina, Irina, 2021. "Economic Freedom of the Russian Federation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(1), January.
    5. Vogel, Lukas, 2017. "Structural reforms at the zero bound," European Journal of Political Economy, Elsevier, vol. 48(C), pages 74-90.
    6. Jeremy Jackson, 2017. "Free to Be Happy: Economic Freedom and Happiness in US States," Journal of Happiness Studies, Springer, vol. 18(4), pages 1207-1229, August.
    7. Choudhury, Sanchari, 2023. "The causal effect of regulation on income inequality across the U.S. states," European Journal of Political Economy, Elsevier, vol. 80(C).
    8. Chambers, Dustin & O'Reilly, Colin, 2022. "Regulation and income inequality in the United States," European Journal of Political Economy, Elsevier, vol. 72(C).
    9. Jonathan D. Ostry & Andrew Berg & Siddharth Kothari, 2021. "Growth‐equity trade‐offs in structural reforms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(2), pages 209-237, May.
    10. Joshua C. Hall & Brad R. Humphreys & Jane E. Ruseski, 2015. "Economic Freedom, Race, and Health Disparities: Evidence from US States," Working Papers 15-43, Department of Economics, West Virginia University.
    11. Daniel L. Bennett & Boris Nikolaev, 2017. "On the ambiguous economic freedom–inequality relationship," Empirical Economics, Springer, vol. 53(2), pages 717-754, September.
    12. Travis Wiseman, 2017. "Economic Freedom And Growth In U.S. State-Level Market Incomes At The Top And Bottom," Contemporary Economic Policy, Western Economic Association International, vol. 35(1), pages 93-112, January.
    13. Hans Pitlik & Martin Rode, 2014. "Free to Choose? Economic Freedom, Relative Income, and Life Control Perceptions," WIFO Working Papers 482, WIFO.
    14. Joshua C. Hall & Brad R. Humphreys & Jane E. Ruseski, 2015. "Economic Freedom and Participation in Physical Activity," Working Papers 15-17, Department of Economics, West Virginia University.
    15. Keith Barnatchez & Robert Lester, 2017. "The Relationship Between Economic Freedom And Economic Dynamism," Contemporary Economic Policy, Western Economic Association International, vol. 35(2), pages 358-372, April.
    16. Chen, Mei-Ping & Lee, Chien-Chiang & Hsu, Yi-Chung, 2017. "Investor sentiment and country exchange traded funds: Does economic freedom matter?," The North American Journal of Economics and Finance, Elsevier, vol. 42(C), pages 285-299.
    17. Migbaru A. Workneh, 2020. "Gender Inequality, Governance, and Poverty in Sub‐Saharan Africa," Poverty & Public Policy, John Wiley & Sons, vol. 12(2), pages 150-174, June.
    18. Faria, Hugo J. & Montesinos-Yufa, Hugo M. & Morales, Daniel R. & Navarro, Carlos E., 2016. "Unbundling the roles of human capital and institutions in economic development," European Journal of Political Economy, Elsevier, vol. 45(S), pages 108-128.

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    More about this item

    Keywords

    Inequality; Poverty; Regulation; Protective/productive government; Freedom;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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