Cohen, Joseph N (2011): Is “economic freedom” the same as free market capitalism? A decompositional analysis of the Economic Freedom of the World index.
This is the latest version of this item.
Download (190kB) | Preview
The Frasier Institute’s Economic Freedom of the World is often taken as a metric of market capitalism, and relationships between the index and macroeconomic outcomes are presented as signaling the consequences of free markets. This paper warns analysts that the index may be conflating three distinct concepts: free markets, good governance and price stability. Analysts should remain cognizant of this conceptual conflation when using the index to develop policy prescriptions.
|Item Type:||MPRA Paper|
|Original Title:||Is “economic freedom” the same as free market capitalism? A decompositional analysis of the Economic Freedom of the World index.|
|Keywords:||Economic Freedom, Neoliberalism, Capitalism, Laissez Faire, Governance, Measurement, Economic Policy, Economic Development|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
P - Economic Systems > P5 - Comparative Economic Systems
P - Economic Systems > P1 - Capitalist Systems
|Depositing User:||Joseph N. Cohen|
|Date Deposited:||23. Sep 2011 22:42|
|Last Modified:||08. Mar 2015 19:22|
Ayal, E.B., and G. Karras. 1998. “Components of economic freedom and growth: an empirical study.” The Journal of Developing Areas 32(3):327–338.
Berggren, Niclas. 2003. “The Benefits of Economic Freedom: A Survey.” The Independent Review 8(2):193 - 211.
Berggren, Niclas, and H. Jordahl. 2005. “Does free trade really reduce growth? Further testing using the economic freedom index.” Public Choice 122(1):99–114.
Burki, Shahid Javed, and Guillermo Perry. 1998. Beyond the Washington consensus: institutions matter. World Bank Publications.
Campbell, D.T., and D.W. Fiske. 1959. “Convergent and discriminant validation by the multitrait-multimethod matrix.” Psychological bulletin 56(2):81.
Carlsson, F., and Susanna Lundström. 2002. “Economic freedom and growth: Decomposing the effects.” Public Choice 112(3):335–344.
Caudill, S.B., F.C. Zanella, and F.G. Mixon. 2000. “Is economic freedom one dimensional? A factor analysis of some common measures of economic freedom.” Journal of Economic Development 25(1):17–40.
Centeno, Miguel A., and Joseph N. Cohen. forth. “The Arc of Neoliberalism.” Annual Review of Sociology.
Chirot, D., and T.D. Hall. 1982. “World-system theory.” Annual Review of Sociology 81–106.
Cohen, Joseph N. 2011. “‘Economic Freedom’ and Economic Growth: Questioning the Claim that Freer Markets Make Societies More Prosperous.” Unpublished manuscript under review.
Doucouliagos, C., and M. A Ulubasoglu. 2006. “Economic freedom and economic growth: Does specification make a difference?” European Journal of Political Economy 22(1):60–81.
Easterly, William Russell. 2002. The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics. MIT Press.
Edwards, Sebastian. 1995. Crisis and Reform in Latin America: From Despair to Hope. A World Bank Publication.
Evans, Peter, and J. E Rauch. 1999. “Bureaucracy and growth: A cross-national analysis of the effects of‘ Weberian’ state structures on economic growth.” American Sociological Review 64(5):748–765.
Everitt, Brian S., Sabine Landau, Morven Leese, and Dr Daniel Stahl. 2011. Cluster Analysis. John Wiley and Sons.
Gwartney, James D., Joshua Hall, and Robert Lawson. 2010. Economic Freedom of the World: 2010 Annual Report. Vancouver: Frasier Institute.
De Haan, Jakob, Susanna Lundström, and J. E Sturm. 2006. “Market-oriented institutions and policies and economic growth: A critical survey.” Journal of Economic Surveys 20(2):157–191.
Hall, Peter A., and David Soskice. 2001. Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press.
Harvey, David. 2005. A Brief History of Neoliberalism. Oxford University Press.
Heckelman, J.C., and M.D. Stroup. 2000. “Whcich Economic Freedoms Contribute to Growth?” Kyklos 53(4):527–544.
Justesen, M.K. 2008. “The effect of economic freedom on growth revisited: New evidence on causality from a panel of countries 1970-1999.” European Journal of Political Economy 24(3):642–660.
Kaufman, L., and P.J. Rousseeuw. 1990. Finding groups in data: an introduction to cluster analysis. Wiley Online Library.
Kaufmann, D., A. Kraay, and M. Mastruzzi. 2009. “Governance matters VIII: Aggregate and individual governance indicators, 1996–2008.” World.
Kolodko, Grzegorz W. 2000. From Shock to Therapy: The Political Economy of Postsocialist Transformation. New York: Oxford University Press.
Peacock, A., and A. Scott. 2000. “The curious attraction of Wagner’s law.” Public Choice 102(1):1–17.
Polak, J.J. 1991. The changing nature of IMF conditionality. International Finance Section, Dept. of Economics, Princeton University.
Rodrik, Dani. 1996. “Understanding economic policy reform.” Journal of Economic Literature 34(1):9–41.
Roland, Gérard. 2001. “Ten Years after ... Transition and Economics.” IMF Staff Papers 48:29-52. Retrieved September 23, 2011.
Staehr, K. 2005. “Reforms and Economic Growth in Transition Economies: Complementarity, Sequencing and Speed.” European Journal of Comparative Economics 2(2):177–202.
Sumner, S. 2004. “How Have Monetary Regime Changes Affected the Popularity of IS-LM?” History of Political Economy 36(Suppl 1):240.
Tures, J. A. 2003. “Economic Freedom and Conflict Reduction: Evidence from the 1970s, 1980s, and 1990s.” Journal article by John A. Tures; The Cato Journal 22.
Williamson, John. 1990. “What Washington means by policy reform” edited by John Williamson. Latin American adjustment: how much has happened 7–20.
Yergin, Daniel, and Joseph Stanislaw. 2002. The Commanding Heights : The Battle for the World Economy. Rev Upd Su. Free Press.
Available Versions of this Item
Is “economic freedom” strictly free market capitalism? A decompositional analysis of the Economic Freedom of the World index. (deposited 02. May 2010 23:58)
- Is “economic freedom” the same as free market capitalism? A decompositional analysis of the Economic Freedom of the World index. (deposited 23. Sep 2011 22:42) [Currently Displayed]