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Title: The Relationship Between Economic Freedom and Economic Dynamism

Citation Type: Journal Article

Publication Year: 2017

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Abstract: We analyze the consequences of economic freedom on economic dynamism across U.S. states and over time. Using data from the Economic Freedom of North America index, we show that states with greater economic freedom have higher rates of gross and net job creation and establishment entry. The results are robust to the inclusion of many different control variables and alternative specifications, suggesting a connection between freedom and dynamism. This evidence supports theories in which government policies may impede business dynamism.

Url: http://onlinelibrary.wiley.com/doi/10.1111/coep.12194/full

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Authors: Barnatchez, Keith; Lester, Robert

Periodical (Full): Contemporary Economic Policy

Issue: 2

Volume: 35

Pages: 358-371

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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