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Economic freedom and growth specification debate: a retrospective

Robert Lawson and Ryan Murphy ()

Applied Economics Letters, 2018, vol. 25, issue 15, 1038-1040

Abstract: This article revisits a 2006 theoretical debate on the appropriate specifications for testing the relationship between economic outcomes and economic freedom. It provides out-of-sample empirical tests corresponding to each of the theoretical positions of the two sides of the debate. The two methods of testing the relationship essentially tie in their ability to predict out-of-sample, although neither model predicts very well for the decade following the debate.

Date: 2018
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