Lastest Projects

Economic Freedom, Democracy and the Quality of Life
 
World Development, Vol. 35, No. 1 (2007)

Abstract
 
            Previous cross-country studies indicate that economic freedom is positively correlated with various measures of prosperity and human welfare in society. Similar studies using democratic political rights have found mixed correlations. However, few of these empirical studies have controlled for the influence of both institutions simultaneously. This empirical analysis uses panel data to examine whether both economic freedoms and democratic political rights have an interdependent influence over various human welfare indicators in the areas of health, education and disease prevention. The results indicate that each institution has an impact on the other’s influence over the quality of life in society.
 
Key Words: democracy, economic freedom, human welfare

Separating the Influence of Capitalism and Democracy on Women's Well-Being

    Journal of Economic Behavior and Organization, Vol. 67, Nos.3-4 (2008)   

Abstract

    This empirical analysis seeks to determine which institutional arrangement—capitalism or democracy—tends to be more effective at improving women’s well-being and promoting gender equity in society. Cross-country indexes measuring the degree of economic freedoms exercised within the market and the degree of political rights exercised within democracy are used in a panel data analysis to explain the observed levels of various quality of life measures reflecting issues that are relevant to women. The results indicate that capitalism often has a stronger edifying impact than democracy for many aspects of women’s well-being and gender equity in society.

Key Words: gender equity, economic freedom, democracy

Separating the Influence of Economic Freedom and Democracy on Air Pollution Emissions Among OECD Countries

Abstract

             This empirical analysis seeks to quantify the respective influence of capitalism and democracy on environmental quality, as measured by the level of undesirable emissions produced per dollar value of GDP in the economy. Air and water pollution, as well as greenhouse gas emission levels per dollar value of GDP are examined among the OECD countries for the years 1980, 1985, 1990 and 1995. A panel data set using an index of political rights (PRI) from the Freedom House and an index of economic freedom (EFI) from the Fraser Institute is used to explain the emission levels per dollar value of GDP for sulfur-oxides, nitrous-oxides, organic water pollutants and carbon-dioxide. The specification controlled for income per capita, population, urbanization, and industry composition, as well as allowed for the potential interactive effects of capitalism and democracy on emission levels. The empirical results indicate that both capitalism and democracy appear to decrease emissions levels per dollar value of GDP. However, the beneficial effect on the environment by each institutional freedom declines with the existing level of the other institutional freedom in society. Further, the beneficial environmental influence of democracy turns to a detrimental influence at a much lower tipping point value for the existing level of EFI in society, relative to the same tipping point value of PRI where the influence from economic freedoms that promote capitalism turns negative. If these empirical results can be applied to countries outside the sample of OECD countries, this implies that those developing countries with only modest levels of political rights and economic freedoms can expect to achieve economic prosperity with a lower negative impact on their environments by raising the level of economic freedoms in society more than the level of political rights.

Key Words:  economic freedom, political rights, pollution, democracy, environment