The Determinants of Economic Freedom: A Survey

42 Pages Posted: 6 Nov 2018

See all articles by Robert Lawson

Robert Lawson

Southern Methodist University (SMU) - Edwin L. Cox School of Business

Ryan Murphy

Southern Methodist University (SMU)

Benjamin Powell

Texas Tech University - Free Market Institute; Texas Tech University - Rawls College of Business

Date Written: October 15, 2018

Abstract

A large literature has found positive associations between economic freedom and income, growth, and a variety of other desirable outcomes. This paper surveys the literature that seeks to explain the causes of economic freedom. Some of the most consistent findings in this literature are that current levels of economic freedom are strongly correlated with past levels; freer countries have more difficulty continuing to improve their economic freedom; democracy and political freedom are positively associated with economic freedom; and inequality is negatively related. We also survey scores of other variables that have positive and negative associations with levels and changes in economic freedom.

Keywords: Economic Freedom, Income, Growth, Democracy, Political Freedom, Inequality

JEL Classification: E02, E14, O17, O43, P1

Suggested Citation

Lawson, Robert and Murphy, Ryan and Powell, Benjamin, The Determinants of Economic Freedom: A Survey (October 15, 2018). Available at SSRN: https://ssrn.com/abstract=3266641 or http://dx.doi.org/10.2139/ssrn.3266641

Robert Lawson

Southern Methodist University (SMU) - Edwin L. Cox School of Business ( email )

P.O. Box 750333
Dallas, TX 75275-0333
United States

Ryan Murphy

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

Benjamin Powell (Contact Author)

Texas Tech University - Free Market Institute ( email )

Box 45059
Lubbock, TX 79409-5059
United States
806.742.7138 (Phone)
806.742.1854 (Fax)

HOME PAGE: http://www.fmi.ttu.edu

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States
806.834.3097 (Phone)
806.742.1854 (Fax)

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