Munich Personal RePEc Archive

Effects of Economic Freedom, Regulatory Quality, and Taxation on Real Income

Cebula, Richard (2013): Effects of Economic Freedom, Regulatory Quality, and Taxation on Real Income.

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Abstract

This exploratory study investigates the hypothesis that higher levels of economic freedom in an “economic region” promote a higher level of economic activity and hence yield higher levels of per capita real income in that economic region, ceteris paribus. However, in the pursuit of a broader perspective, this study also investigates the hypothesis that the higher the taxation level relative to GDP, the lower the per capita real income level. Finally, in the pursuit of a broader perspective, this study also investigates the hypothesis that higher quality regulation leads to higher per capita real income level.

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