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Government ideology and economic freedom

Vitor Castro, +2 more
- 01 Mar 2021 - 
- Vol. 49, Iss: 1, pp 73-91
TLDR
In this paper, the authors test the widespread belief that right-wing governments tend to promote economic freedom while left-wing ones prefer more control over the economy using annual data for 106 countries over the period 1975-2015 and a two-step GMM estimator.
About: 
This article is published in Journal of Comparative Economics.The article was published on 2021-03-01 and is currently open access. It has received 11 citations till now. The article focuses on the topics: Economic freedom & Emerging markets.

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Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries

Niklas Potrafke
- 01 Jan 2010 - 
TL;DR: In this article, the authors examined how government ideology has influenced deregulation of product markets in OECD countries and found that market-oriented governments promoted the deregulation of the energy, transport and communication industries.
Journal ArticleDOI

The Long-Run Effect of Government Ideology on Economic Freedom

Ryan H. Murphy
- 19 Sep 2017 - 
TL;DR: In this paper, the authors consider the effects of the ideology of parties in power over the long run (1928-95) on economic freedom in subsequent periods and conclude that there is minor, uneven evidence of an effect.
Journal ArticleDOI

The effects of energy price, spatial spillover of CO2 emissions, and economic freedom on CO2 emissions in Europe: a spatial econometrics approach

Milton Abellón
- 25 Apr 2022 - 
Journal ArticleDOI

Effects of African aviation liberalisation on economic freedom, air connectivity and related economic consequences

Tassew Dufera Tolcha, +3 more
- 05 Jun 2021 - 
TL;DR: In this article, the effects of air transport liberalisation on economic freedom and air connectivity, and the extended effects on economic development, were investigated, and it was concluded that removing barriers to trade using air transport, combined with institutions that support economic freedom, may foster countries' economic development.
Posted Content

Economic Freedom and Government Ideology Across the German States

Niklas Potrafke
- 19 Oct 2011 - 
TL;DR: In this paper, the authors examined whether government ideology influenced economic freedom across the German states and found that in former West Germany rightwing governments promoted economic freedom, whereas leftwing governments confined it.
References
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Journal ArticleDOI

Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.

Manuel Arellano, +1 more
- 01 Apr 1991 - 
TL;DR: In this article, the generalized method of moments (GMM) estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables.
Journal ArticleDOI

A Contribution to the Theory of Economic Growth

Robert M. Solow
- 01 Feb 1956 - 
TL;DR: In this paper, a model of long run growth is proposed and examples of possible growth patterns are given. But the model does not consider the long run of the economy and does not take into account the characteristics of interest and wage rates.
Report SeriesDOI

Initial conditions and moment restrictions in dynamic panel data models

Richard Blundell, +1 more
- 01 Nov 1998 - 
TL;DR: In this paper, two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator are presented. But both estimators require restrictions on the initial conditions process.
Journal ArticleDOI

Another look at the instrumental variable estimation of error-components models

Manuel Arellano, +1 more
- 01 Jul 1995 - 
TL;DR: In this paper, a framework for efficient IV estimators of random effects models with information in levels which can accommodate predetermined variables is presented. But the authors do not consider models with predetermined variables that have constant correlation with the effects.
Book

Econometric Analysis of Panel Data

Badi H. Baltagi
TL;DR: In this article, the authors proposed a two-way error component regression model for estimating the likelihood of a particular item in a set of data points in a single-dimensional graph.
Frequently Asked Questions (5)
Q1. What are the contributions in "Government ideology and economic freedom∗" ?

This paper tests the widespread belief that right-wing governments tend to promote economic freedom while left-wing ones prefer more control over the economy. Using annual data for 106 countries over the period 1975-2015 and a two-step system GMM estimator, this study shows that right-wing governments are indeed more prone to promote economic freedom and to deregulate the economy. 

It focuses on the importance of money and relative price stability in the exchange process; sound money reduces transaction costs and facilitates exchange, thereby promoting economic freedom; so to score high in this area, a country must follow policies and adopt institutions that lead to low (and stable) rates of inflation and avoid regulations that limit the ability to use alternative currencies. 

As the size of the government increases, in terms of government spending, taxation, government-controlled enterprises, etc., centralized decision-making replaces individual choices and economic freedom is reduced; countries with smaller governments register higher ratings in this area. 

Measures the importance of the legal system as a determinant of economic freedom; countries where the rule of law prevails, protection of persons and their rightfully acquired property is guaranteed, the judiciary system is independent and unbiased and there is an effective and impartial enforcement of the law will score better in this area. 

The countries used in the estimations are the following (OECD countries in italic): Albania, Algeria, Argentina, Armenia, Australia, Austria, Azerbaijan, Bangladesh, Belgium, Benin, Bolivia, Bosnia, Botswana, Brazil, Bulgaria, Burkina Faso, Burundi, Cameroon, Canada, Chile, Colombia, Republic of Congo, Costa Rica, Cote d’Ivoire, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Finland, France, Gabon, Georgia, Germany, Ghana, Greece, Guatemala, Guyana, Haiti, Honduras, Hungary, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kenya, Korea, Kyrgyz Republic, Latvia, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Mali, Mauritius, Mexico, Mongolia, Morocco, Mozambique, Namibia, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Pakistan, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Russia, Senegal, Sierra Leone, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, United States, Uruguay, Venezuela, Zambia, Zimbabwe.