Sub-national indices of economic freedom

Stansel, Dean; Bologna, Jamie

doi:10.4337/9781784718237.00010

Cited by 10 publications

(22 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As documented by Hall and Lawson (2014), Lawson et al (2020), Lawson (2022), among others, economic freedom is a contributing factor to both economic growth (see, e.g., Carlsson & Lundström, 2002; Dawson, 2003; de Haan & Siermann, 1998; de Haan & Sturm, 2000; Gwartney et al, 1999; Lawson & Murphy, 2018; Olson, 1996, 1998; Sturm & de Haan, 2001; and for U.S. state‐level evidence, see Ihlenfeld et al, 2022; Stansel & Tuszynski, 2018) and income convergence (see, e.g., Li & Xu, 2007; Xu & Li, 2008). The inclusion of economic freedom in these studies represents the role of market liberalism in the growth and convergence process, and in some cases serves as a proxy for institutional quality.…”

Section: Introductionmentioning

confidence: 99%

The convergence dynamics of economic freedom across U.S. states

Payne

Saunoris

Nazlıoğlu

et al. 2023

Southern Economic Journal

View full text Add to dashboard Cite

This study tests for convergence in economic freedom across the 50 U.S. states from 1981 to 2019. In particular, we test for stochastic convergence in overall economic freedom using unit root tests that account for structural breaks and bounded processes, two sources of parameter instability. We find limited evidence of stochastic convergence. Further analysis of relative (club) convergence and weak σ‐convergence rejects the presence of overall convergence in the panel of the U.S. states, but the emergence of two convergence clubs with respect to state‐level economic freedom. The logit analysis of the determinants of the convergence clubs reveals that more prosperous states and states with a higher initial level of economic freedom have a higher probability of being in the club with more economic freedom. However, more racially diverse states have a lower probability of being in the club with more economic freedom.

show abstract

Section: Introductionmentioning

confidence: 99%

The convergence dynamics of economic freedom across U.S. states

Payne

Saunoris

Nazlıoğlu

et al. 2023

Southern Economic Journal

View full text Add to dashboard Cite

show abstract

“…Primarily, these studies have employed cross-sectional, time series, or panel analysis, as there have been few obvious opportunities to employ experimental and quasi-experimental methods that have gained popularity in recent decades (as in Angrist and Pischke, 2010). While the most work has been done using country indices (especially using Gwartney et al ., 2015), Economic Freedom of North America (EFNA) (Stansel et al ., 2014), which measures economic freedom of states and provinces of the US, Mexico, and Canada, is becoming commonly used as well (Hall et al ., 2015; Stansel 2013).…”

Section: Introductionmentioning

confidence: 99%

Economic freedom of North America at state borders

Murphy¹

2016

Journal of Institutional Economics

View full text Add to dashboard Cite

I use matched county pairs on either side of US state borders to investigate the causal effects of the Economic Freedom of North America index (EFNA) on local outcomes. This method is similar to Dube et al. (2010). I construct a panel of county pairs running from 1981–2012 and four measures of outcomes, logged real incomes, logged real per capita incomes, employment, and logged real wages, employing single year and five year differences-in-differences. I find small, but precisely estimated, effects on incomes but mixed effects on wages and employment. All regressions show low R2. This supports the hypothesis that state-level economic freedom improves capital income or that it attracts capital income across state borders.

show abstract

“…Seen from this perspective, we would argue that servicing a customer renting one way from El Centro to Amarillo is more costly from a fleet management perspective than one who wants to move from Amarillo to El Centro because the former customer is taking a truck away from a high demand location and moving it to a lower demand location. Stansel (2019) has developed a U.S. Metropolitan Area Economic Freedom Index for Metropolitan Statistical Areas (MSAs) in the United States. The metro-area economic freedom index (MEFI), like the Economic Freedom of the World (EFW) index (Gwartney et al, 2022) and Economic Freedom of North America (EFNA) index (Stansel et al, 2022) that inspired it, attempts to measure how economically free citizens are at the metro-area level.…”

Section: One-way Truck Rental Pricesmentioning

confidence: 99%

“…Stansel (2019) has developed a U.S. Metropolitan Area Economic Freedom Index for Metropolitan Statistical Areas (MSAs) in the United States. The metro‐area economic freedom index (MEFI), like the Economic Freedom of the World (EFW) index (Gwartney et al, 2022) and Economic Freedom of North America (EFNA) index (Stansel et al, 2022) that inspired it, attempts to measure how economically free citizens are at the metro‐area level.…”

Section: Metropolitan Area Economic Freedommentioning

confidence: 99%