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Fall 2015

ISSN 0890-913X

Volume 30, Number 3

Categories: Fall 2015 | Freedom

Determining Economic Freedom: Democracy, Political competition, and the Wealth Preservation Struggle

Jody W. Lipford, Francis Marion University - United States of America

Bruce Yandle, Mercatus Center at George Mason University and Clemson University

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TheJournalofPrivateEnterprise30(3),2015,1–18DeterminingEconomicFreedom:Democracy,PoliticalCompetition,andtheWealthPreservationStruggleJodyW.LipfordPresbyterianCollegeBruceYandle�MercatusCenteratGeorgeMasonUniversityandClemsonUniversity______________________________________________________AbstractThebeneficialeffectsofeconomicfreedomonlivingstandardsandsocialoutcomesaremanyandwell-documented.Weexaminefactorsthatexplaineconomicfreedom.First,weusethefiftyUSstatesasourunitofanalysistoevaluatehoweconomicfreedomisdeterminedinacompetitivepoliticalsystem,whereresourcesaremobileacrossborders.Second,weemployamultiequationmodelthatincludestheeffectsofeconomicfreedomonincome,employment,andincomedistribution.Thismodelyieldsmanyinterestingresults,includingsupportforthehypothesisthatstakeholders,withwealthputatriskbygovernmentpolicies,arecrucialplayersinthepoliticalprocessthatdetermineseconomicfreedom.______________________________________________________JELCodes:D63,H75,R11Keywords:economicfreedom,regionalcompetition,income,employment,incomeinequalityI.IntroductionThebenefitsofeconomicfreedomarewell-knownandwidelydocumented.Ingeneral,economicfreedomhasbeenshowntobeassociatedwithhigherlivingstandards,morerapideconomicgrowth,longerlifeexpectancy,andimprovedenvironmentalquality(ClarkandLee2006;ClarkandPearson2007;HankeandWalters1997;CampbellandRogers2007).Notsurprisingly,economicfreedomispositivelycorrelatedwithnetmigration,aspeople—bothforeignand�Theauthorsexpressappreciationtotheeditorandrefereesforhelpfulcomments.1

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Title	Determining Economic Freedom: Democracy, Political competition, and the Wealth Preservation Struggle
Authors/Creators:	Jody W. Lipford, Francis Marion University - United States of America Bruce Yandle, Mercatus Center at George Mason University and Clemson University
Year:	2015
Volume:	30
Number:	3
Pages:	1 - 18
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	economic freedom, regional competition, income, employment, income inequality

Citation:
Lipford, Jody W.; Yandle, Bruce / 2015. "Determining Economic Freedom: Democracy, Political competition, and the Wealth Preservation Struggle." The Journal of Private Enterprise, 30(3): 1-18.