IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v175y2024i2d10.1007_s11205-024-03324-9.html
   My bibliography  Save this article

Evaluating and Improving the Metropolitan Economic Freedom Index

Author

Listed:
  • Arvind Sharma

    (Boston College Woods College)

  • Aleksandar Tomic

    (Boston College Woods College)

  • Lawrence Fulton

    (Boston College Woods College)

Abstract

The Metropolitan Economic Freedom Index (MEFI) ranks cities based on their support of free market enterprise. In its current state, MEFI purports to measure three constructs (government spending, taxation, and labor market freedom) with three equally weighted variables for each one, assuming perfect substitutability of variables. This study investigates the statistical consistency of MEFI through Confirmatory Factor Analysis. Multiple models investigate current variable selection by providing a potentially better indicator of labor market freedom, aggregation assumptions by removing the requirements for fixed and equal weights, and statistical consistency by evaluating the fit between the data and models. Results indicate that the current MEFI model is not statistically consistent with the data, that weighting of variables should not be equal, that variable selection should be investigated, and that constructs should be re-imagined. The models investigated provide an initial starting point for redefining MEFI.

Suggested Citation

  • Arvind Sharma & Aleksandar Tomic & Lawrence Fulton, 2024. "Evaluating and Improving the Metropolitan Economic Freedom Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 175(2), pages 445-466, November.
    • Handle: RePEc:spr:soinre:v:175:y:2024:i:2:d:10.1007_s11205-024-03324-9
    DOI: 10.1007/s11205-024-03324-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-024-03324-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-024-03324-9?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ivana Brkić & Nikola Gradojević & Svetlana Ignjatijević, 2020. "The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence," JRFM, MDPI, vol. 13(2), pages 1-13, February.
    2. Martin Schlossarek & Miroslav Syrovátka & Ondřej Vencálek, 2019. "The Importance of Variables in Composite Indices: A Contribution to the Methodology and Application to Development Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1125-1160, October.
    3. Niesr, 2022. "Executive summary," National Institute Global Economic Outlook, National Institute of Economic and Social Research, vol. 0(5), pages 1-4.
    4. Henry Kaiser, 1958. "The varimax criterion for analytic rotation in factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 23(3), pages 187-200, September.
    5. Niesr, 2022. "Executive summary," National Institute Global Economic Outlook, National Institute of Economic and Social Research, issue 5, pages 1-4.
    6. Donald R. Grimes & Penelope B. Prime & Mary Beth Walker, 2019. "Geographical Variation in Wages of Workers in Low-Wage Service Occupations: A U.S. Metropolitan Area Analysis," Economic Development Quarterly, , vol. 33(2), pages 121-133, May.
    7. Rosseel, Yves, 2012. "lavaan: An R Package for Structural Equation Modeling," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i02).
    8. Cavicchia, Carlo & Sarnacchiaro, Pasquale & Vichi, Maurizio, 2021. "A composite indicator for the waste management in the EU via Hierarchical Disjoint Non-Negative Factor Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    9. Niesr, 2022. "Executive summary," National Institute Global Economic Outlook, National Institute of Economic and Social Research, vol. 0(1 Winter), pages 1-4.
    10. Stansel, Dean, 2019. "Economic Freedom in U.S. Metropolitan Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(1), March.
    11. Carlo Cavicchia & Maurizio Vichi, 2021. "Statistical Model-Based Composite Indicators for Tracking Coherent Policy Conclusions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(2), pages 449-479, August.
    Full references (including those not matched with items on IDEAS)

    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. Piotr Tarka, 2018. "An overview of structural equation modeling: its beginnings, historical development, usefulness and controversies in the social sciences," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 313-354, January.
    2. Hermann Frank & Alexander Kessler & Thomas Rusch & Julia Suess–Reyes & Daniela Weismeier–Sammer, 2017. "Capturing the Familiness of Family Businesses: Development of the Family Influence Familiness Scale (FIFS)," Entrepreneurship Theory and Practice, , vol. 41(5), pages 709-742, September.
    3. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    4. Bonhomme, Stphane & Robin, Jean-Marc, 2009. "Consistent noisy independent component analysis," Journal of Econometrics, Elsevier, vol. 149(1), pages 12-25, April.
    5. Mariateresa Ciommi & Chiara Gigliarano & Francesco M. Chelli & Mauro Gallegati, 2022. "It is the Total that Does [Not] Make the Sum: Nature, Economy and Society in the Equitable and Sustainable Well-Being of the Italian Provinces," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 491-522, June.
    6. César Merino-Soto & Gina Chávez-Ventura & Verónica López-Fernández & Guillermo M. Chans & Filiberto Toledano-Toledano, 2022. "Learning Self-Regulation Questionnaire (SRQ-L): Psychometric and Measurement Invariance Evidence in Peruvian Undergraduate Students," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    7. Fernando Castelló-Sirvent & Pablo Pinazo-Dallenbach, 2021. "Corruption Shock in Mexico: fsQCA Analysis of Entrepreneurial Intention in University Students," Mathematics, MDPI, vol. 9(14), pages 1-31, July.
    8. Rodríguez-Fuentes, Carlos Javier & Hernández-López, Montserrat, 1997. "Análisis de diferencias estructurales interregionales determinantes en el impacto de la política monetaria," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 7, pages 141-157, Junio.
    9. Ivaldi, Enrico, 2013. "Proposal of a country risk index based on a factorial analysis - Una proposta di indice di rischio paese basato sull’analisi fattoriale: una applicazione ai paesi del sud del Mediterraneo e ai paesi d," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 66(2), pages 231-249.
    10. Nathaniel Oliver Iotti & Damiano Menin & Tomas Jungert, 2022. "Early Adolescents’ Motivations to Defend Victims of Cyberbullying," IJERPH, MDPI, vol. 19(14), pages 1-9, July.
    11. Christoph Dworschak, 2024. "Bias mitigation in empirical peace and conflict studies: A short primer on posttreatment variables," Journal of Peace Research, Peace Research Institute Oslo, vol. 61(3), pages 462-476, May.
    12. Andreea-Ionela Puiu & Anca Monica Ardeleanu & Camelia Cojocaru & Anca Bratu, 2021. "Exploring the Effect of Status Quo, Innovativeness, and Involvement Tendencies on Luxury Fashion Innovations: The Mediation Role of Status Consumption," Mathematics, MDPI, vol. 9(9), pages 1-18, May.
    13. Slupphaug, KJell & Mehmetoglu, Mehmet & Mittner, Matthias, 2024. "modsem: An R package for estimating latent interactions and quadratic effects," OSF Preprints h3rpw, Center for Open Science.
    14. De Nicola, Arianna & Gitto, Simone & Mancuso, Paolo, 2013. "Airport quality and productivity changes: A Malmquist index decomposition assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 67-75.
    15. Allen, Jaime & Muñoz, Juan Carlos & Ortúzar, Juan de Dios, 2019. "On evasion behaviour in public transport: Dissatisfaction or contagion?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 626-651.
    16. Merkle, Edgar C. & Steyvers, Mark & Mellers, Barbara & Tetlock, Philip E., 2017. "A neglected dimension of good forecasting judgment: The questions we choose also matter," International Journal of Forecasting, Elsevier, vol. 33(4), pages 817-832.
    17. Sai-fu Fung & Esther Oi-wah Chow & Chau-kiu Cheung, 2020. "Development and Evaluation of the Psychometric Properties of a Brief Wisdom Development Scale," IJERPH, MDPI, vol. 17(8), pages 1-14, April.
    18. Goran Calic & Moren Lévesque & Anton Shevchenko, 2024. "On why women-owned businesses take more time to secure microloans," Small Business Economics, Springer, vol. 63(3), pages 917-938, October.
    19. Dang Vu, Hoai Nam & Nielsen, Martin Reinhardt, 2022. "Understanding determinants of the intention to buy rhino horn in Vietnam through the Theory of Planned Behaviour and the Theory of Interpersonal Behaviour," Ecological Economics, Elsevier, vol. 195(C).
    20. Wenigmann, Marc & Weiß, Julia & Heidelberg, Rahel, 2024. "Holding anti-feminist gender role beliefs mediate the relationship between family-related adverse childhood experiences and different forms of intimate partner violence perpetration in adulthood," Journal of Criminal Justice, Elsevier, vol. 93(C).

    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:spr:soinre:v:175:y:2024:i:2:d:10.1007_s11205-024-03324-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.