How to Handle Economic Freedom: Reply to Lawson
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Jakob de Haan is Professor of Political Economy, University of Groningen, the Netherlands. He is also director of SOM, the research institut…
Jan-Egbert Sturm is Professor of Applied Macroeconomics and director of KOF—Swiss Institute for Business Cycle Research both at the ETH Zuri…
Abstract
IN HIS COMMENT ON THE ECONOMIC FREEDOM SURVEY ARTICLE we wrote with Susanna Lundström (De Haan et al. 2006), Lawson (2006) criticizes five elements of our article: 1.Our use of the term “zealots.” 2.Our remarks on the role of government in the construction of the economic freedom index. 3.Our discussion of the composition of the economic freedom index. 4.Our criticism of empirical growth models that include both the level and the change in economic freedom. 5.Our endorsement of a modeling approach wherein researchers run many specifications
This article is a response to On Testing the Connection Between Economic Freedom and Growth by Robert A. Lawson (EJW, September 2006).
Response to this article by Julio H. Cole and Robert A. Lawson: Handling Economic Freedom in Growth Regressions: Suggestions for Clarification (EJW, January 2007).