Free to Grow? A Matching Methods Analysis of Jumps in US State-Level Economic Freedom

30 Pages Posted: 24 Jun 2020

See all articles by Justin T Callais

Justin T Callais

Texas Tech University, College of Agricultural Sciences and Natural Resources, Department of Agricultural and Applied Economics, Students

Date Written: June 1, 2020

Abstract

This paper contributes to the literature that uses the Economic Freedom of North America (EFNA) index to evaluate relationships with various outcomes. Most of the literature estimates a linear relationship between economic freedom and those outcomes. However, using matching methods can be a better way to address potential selection bias issues. I examine the effects of five-year sustained jumps in EFNA scores on subsequent GDP per capita growth. My results show slight evidence for a short-term boost in income. However, these results are not robust and are largely contingent on the matching method used.

Keywords: economic freedom, regional development, matching methods

JEL Classification: R11, O18, H70

Suggested Citation

Callais, Justin, Free to Grow? A Matching Methods Analysis of Jumps in US State-Level Economic Freedom (June 1, 2020). Available at SSRN: https://ssrn.com/abstract=3616385 or http://dx.doi.org/10.2139/ssrn.3616385

Justin Callais (Contact Author)

Texas Tech University, College of Agricultural Sciences and Natural Resources, Department of Agricultural and Applied Economics, Students ( email )

Box 42132
Lubbock, TX 79409-2132
United States

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