A Random Walk to Economic Freedom?
Given the wide use of economic freedom in economic literature it is imperative to understand how economic freedom evolves. Results suggest that levels of economic freedom are dominated by random shocks. Using a test for stationarity devised by Westerlund and Larsson (2012) we are unable to reject th...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Università Carlo Cattaneo LIUC
2013-04-01
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| Series: | The European Journal of Comparative Economics |
| Subjects: | |
| Online Access: | http://eaces.liuc.it/18242979201301/182429792013100102.pdf |
| _version_ | 1818906660474716160 |
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| author | Witte, Mark David Hefner, Frank |
| author_facet | Witte, Mark David Hefner, Frank |
| author_sort | Witte, Mark David |
| collection | DOAJ |
| description | Given the wide use of economic freedom in economic literature it is imperative to understand how economic freedom evolves. Results suggest that levels of economic freedom are dominated by random shocks. Using a test for stationarity devised by Westerlund and Larsson (2012) we are unable to reject the null hypothesis of a random walk. The changes to economic freedom also are mostly driven by random shocks with only a minor role played by country specific characteristics. Additionally, changes to economic freedom are partially reversed as increases (decreases) in one year are partially offset by decreases (increases) in the next year. |
| first_indexed | 2024-12-19T21:42:46Z |
| format | Article |
| id | doaj.art-5a2ffc7c1a374015a43a2b18c78de0c5 |
| institution | Directory Open Access Journal |
| issn | 1824-2979 |
| language | English |
| last_indexed | 2024-12-19T21:42:46Z |
| publishDate | 2013-04-01 |
| publisher | Università Carlo Cattaneo LIUC |
| record_format | Article |
| series | The European Journal of Comparative Economics |
| spelling | doaj.art-5a2ffc7c1a374015a43a2b18c78de0c52022-12-21T20:04:36ZengUniversità Carlo Cattaneo LIUCThe European Journal of Comparative Economics1824-29792013-04-011012747A Random Walk to Economic Freedom?Witte, Mark DavidHefner, FrankGiven the wide use of economic freedom in economic literature it is imperative to understand how economic freedom evolves. Results suggest that levels of economic freedom are dominated by random shocks. Using a test for stationarity devised by Westerlund and Larsson (2012) we are unable to reject the null hypothesis of a random walk. The changes to economic freedom also are mostly driven by random shocks with only a minor role played by country specific characteristics. Additionally, changes to economic freedom are partially reversed as increases (decreases) in one year are partially offset by decreases (increases) in the next year.http://eaces.liuc.it/18242979201301/182429792013100102.pdfeconomic freedom indexrandom walkgrowth |
| spellingShingle | Witte, Mark David Hefner, Frank A Random Walk to Economic Freedom? The European Journal of Comparative Economics economic freedom index random walk growth |
| title | A Random Walk to Economic Freedom? |
| title_full | A Random Walk to Economic Freedom? |
| title_fullStr | A Random Walk to Economic Freedom? |
| title_full_unstemmed | A Random Walk to Economic Freedom? |
| title_short | A Random Walk to Economic Freedom? |
| title_sort | random walk to economic freedom |
| topic | economic freedom index random walk growth |
| url | http://eaces.liuc.it/18242979201301/182429792013100102.pdf |
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