Using Economic Freedom Indexes as Policy Indicators: An Intercontinental Example

We use time-series cross-section analysis to provide empirical validation for the existence of a specific American ethos and a specific European ethos with respect to economic policy. In our innovation, economic policy is proxied by “economic freedom” from the Fraser Institute database and constitutional “political institutions” are proxied by variables from the Database of Political Institutions (from the World Bank). Our results suggest that, once we control for political and institutional differences, the United States and Europe still pursue different economic policies.

Zane A. SpindlerEmail:

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Zane A. Spindler   born in 1941, has a Ph.D. in economics (Michigan State University, 1968) and has been a professor in the Department of Economics, Simon Fraser University, since 1967. His current research interests include constitutional foundations of economic freedom, central bank governance, and the evolution of land contests. His works have been published in the Canadian Journal of Economics, Constitutional Political Economy, Oxford Economic Papers, Public Choice, Public Organizational Review, and South African Journal of Economics. Xavier de Vanssay   born in 1961, has a Ph.D. in economics (Simon Fraser University, 1992) and has been a professor in the Department of Economics, Glendon College, York University, since 1990. His current research interests include constitutional foundations of economic freedom, monetary institutions, and trade policy. His works have been published in the Journal of Economic Education, Public Finance Quarterly, Constitutional Political Economy, Public Choice, and South African Journal of Economics. Vincent Hildebrand   born in 1970, has a Ph.D. in economics (York University, 2001) and has been a professor in the Department of Economics, Glendon College, York University, since 2002. His current research interests explore disparities in the distribution of wealth across gender, race and ethnicity. His works have been published in the Journal of Human Resources, the Review of Income and Wealth, Social Science Quarterly, Constitutional Political Economy and Environmental and Resource Economics.