An ordinal ranking of economic institutions |
| |
| Authors: | Scott Beaulier Robert Elder Cheryl Han Joshua C. Hall |
| |
| Affiliation: | 1. W.P. Carey School of Business, Arizona State University, Tempe, AZ, USA;2. Department of Economics, Beloit College, Beloit, WI, USA;3. Regal Beloit Corporation, Beloit, WI, USA;4. College of Business and Economics, West Virginia University, Morgantown, WV, USA |
| |
| Abstract: | We provide the first ranking of countries’ economic institutions using an ordinal methodology. Using the five areas of the Fraser Institute’s Economic Freedom of the World (EFW) index, we find that final rankings of a country’s institutions are sensitive to the importance-ordering of Area 1 (Size of Government). When Areas 2–5 are in the most important position, we find that there is no significant difference between the EFW rankings and our rankings. When Area 1 is placed in the most important position, however, a number of European countries with large welfare states but good governance do poorly. |
| |
| Keywords: | Economic freedom ordinal Net Dominance Metric |
|
|
