Download This PaperDo Democratic Governors Lower Economic Freedom? A Regression Discontinuity Approach
Hankins, W.B. and Hoover, G.A., 2019. Do Democratic governors lower economic freedom? A regression discontinuity approach. Journal of Public Finance and Public Choice, 34(2), pp.101-126.
36 Pages Posted: 6 Apr 2022
Date Written: April 17, 2019
Abstract
Using a panel of U.S. states over the period 1985 - 2010, we examine how Democratic governors affect economic freedom compared to Republican governors. Economic freedom is measured using the Economic Freedom of North America Index (EFNA). Given the emphasis this index places on smaller government, we expect that having a Democratic governor leads to less economic freedom. However, using a regression discontinuity approach, we find that Democratic governors do not reduce economic freedom compared to Republican governors elected by a similar margin. An implication of this result is that governors must appeal to the median voter when making policy.
Keywords: Economic Freedom, Political Parties, Public Economics, Regression Discontinuity
JEL Classification: D72, H70, R5
Suggested Citation: Suggested Citation