Housing Prices and Economic Freedom

Journal of Private Enterprise, Vol. XXII, No. 2, pp. 1-17, 2010

Posted: 15 Apr 2010

See all articles by Noel D. Campbell

Noel D. Campbell

University of Central Arkansas

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business

Kirk C. Heriot

Columbus State University

Date Written: April 14, 2010

Abstract

The Economic Freedom Index of North America measures the impact of governmental institutions. The literature finds that economic freedom leads to higher incomes. Economic freedom is a geographically defined benefit, the value of which will be capitalized into real estate values. We hypothesize that more economic freedom should lead to higher home prices, ceteris paribus. Our findings support our hypothesis. Through a variety of direct and indirect effects, economic freedom influences the quality of life. States that are more economically free are more attractive places to live, and the benefits accruing to more economic freedom are capitalized into home prices.

Keywords: housing prices, economic freedom

Suggested Citation

Campbell, Noel D. and Jauregui, Andres and Heriot, Kirk C., Housing Prices and Economic Freedom (April 14, 2010). Journal of Private Enterprise, Vol. XXII, No. 2, pp. 1-17, 2010, Available at SSRN: https://ssrn.com/abstract=1589516

Noel D. Campbell (Contact Author)

University of Central Arkansas ( email )

Conway, AR 72032
United States
(501)852-7743 (Phone)

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business ( email )

Columbus, GA 31907-5645
United States

Kirk C. Heriot

Columbus State University ( email )

Columbus, GA 31907-5645
United States
7065621674 (Phone)
7065682184 (Fax)

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