Economic Freedom and Recidivism: Evidence from US States

This paper provides an exploratory analysis into factors contributing to differences across states in recidivism rates. We provide the first such examination that incorporates differences in economic freedom. Using a panel data set from 1998- 2010, we find that higher levels of economic freedom within a state are associated with lower recidivism rates within that state. A one percent increase in economic freedom is associated with a 0.47 percent decrease in recidivism. The relationship is stronger and more statistically significant for labor market freedom, with a one percent increase in labor market freedom being associated with a 0.67 percent decline in recidivism

Economic Freedom Studies at the State Level: A Survey

This chapter synthesizes and elaborates on much of the existing research using the Economic Freedom of North America (EFNA) index. Our consensus after reading this literature is that the EFNA index, similarly to the Economic Freedom of the World (EFW) index, is largely positively related with “good” outcomes, and negatively related with “bad” ones, although there are a few exceptions. The literature using the EFNA is growing rapidly and can provide a useful guide towards future policy changes and economic outcomes

Economic Freedom in U.S. Metropolitan Areas

This paper is a revised, updated, and expanded version of the first economic freedom index for local economies in the U.S. (Stansel, 2013). It provides a more comprehensive measure of the restrictions government places upon economic freedom compared to simple scale measures like government spending or revenue. That makes it a valuable tool for a wide variety of academic and public policy researchers seeking to investigate the impact of government upon society. The two economic freedom indices of nations have stimulated a large body of such research, as have the state-level indices. There is a small and growing local-level literature reviewed herein. Like with the other two sets of indices, local economic freedom is found to be correlated with positive economic outcomes such as higher per capita income and higher population growth

Economic Freedom in U.S. Metropolitan Areas

This paper is a revised, updated, and expanded version of the first economic freedom index for local economies in the U.S. (Stansel, 2013). It provides a more comprehensive measure of the restrictions government places upon economic freedom compared to simple scale measures like government spending or revenue. That makes it a valuable tool for a wide variety of academic and public policy researchers seeking to investigate the impact of government upon society. The two economic freedom indices of nations have stimulated a large body of such research, as have the state-level indices. There is a small and growing local-level literature reviewed herein. Like with the other two sets of indices, local economic freedom is found to be correlated with positive economic outcomes such as higher per capita income and higher population growth

Labor Market Freedom and Economic Prosperity: How Does Missouri Compare?

Government restrictions on workers and employers tend to have a dampening effect on their ability to thrive. There have been numerous studies of the relationship between state labor market restrictions and labor market outcomes (as well as economic outcomes in general). As theory would imply, that literature generally has found a positive relationship between labor market freedom and various measures of positive economic outcomes. After a discussion of the concept of economic freedom and how it is measured in labor markets, this paper briefly reviews that literature. It also provides a detailed examination of how Missouri compares to its neighboring states and the U.S. average on a variety of measures of both labor market freedom and economic prosperity. Many other states are doing better than Missouri in both areas. A prescription for policy reforms that will move to correcting that disparity is provided

Why Some Cities are Growing and Others Shrinking

Over the last three decades, large cities like Pittsburgh, Detroit, Cleveland, Buffalo, and Toledo have seen their populations shrink, while areas like Houston, Atlanta, Dallas, Tampa, and Phoenix have seen their populations grow rapidly. Examining the policy differences between high-growth and low-growth areas can provide evidence that may help declining cities reverse their fortunes. This article details that relationship between taxes and growth for the 100 largest U.S. metropolitan areas. In the 10 highest-tax metro areas, the state and local tax burden accounted for about 12.4 percent of personal income. In those same areas, population grew by 21.3 percent from 1980 to 2007, employment grew by 40.1 percent, and real personal income grew by 75.5 percent. In contrast, taxes were only 8.3 percent of personal income in the 10 lowest-tax areas. The economic growth in those areas was much faster. Population grew by 64.4 percent, employment by 107.6 percent, and real personal income by 157.3 percent

An Economic Freedom Index for U.S. Metropolitan Areas

This paper is the first attempt to produce an economic freedom index for local economies in the U.S. It provides a more comprehensive measure of the restrictions government places upon economic freedom compared to simple fiscal measures like total government spending or revenue. That makes it a valuable tool for a wide variety of researchers seeking to investigate the impact of government upon society, including regional economists and researchers in state and local public finance. The two economic freedom indices of nations have stimulated a large body of such research. There are several similar indices that provide the same tool for those examining state governments. Like the other two sets of indices, higher levels of local economic freedom are found to be correlated with positive economic outcomes such as higher per capita income and lower unemployment