What do macroeconomic and political-economy data tell us about economic freedom?

Raphael Franck*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

We use OLS cross-country regressions and a competitive neural network approach to evaluate the performance of macroeconomic and political-economy data in assessing economic freedom. Our results point to a reasonable performance of the cross-sectional approach in explaining economic freedom scores but to a poor performance of the neural network approach in replicating country rankings provided by the Index of Economic Freedom. Our results thus justify the use of qualitative elements but at the same time call in question the relevance of macroeconomic data in the construction of economic freedom rankings.

Original languageAmerican English
Pages (from-to)269-272
Number of pages4
JournalApplied Economics Letters
Volume17
Issue number3
DOIs
StatePublished - Feb 2010
Externally publishedYes

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