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A Random Walk to Economic Freedom

Frank Hefner & Mark David Witte

European Journal of Comparative Economics2013article
ABDC B
Weight
0.44

Abstract

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.

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Cite this paper

@article{frank2013,
  title        = {{A Random Walk to Economic Freedom}},
  author       = {Frank Hefner & Mark David Witte},
  journal      = {European Journal of Comparative Economics},
  year         = {2013},
}

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A Random Walk to Economic Freedom

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Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.46 × 0.4 = 0.18
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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