Economic Freedom, Government Policy and the Trade-Off Between Equity and Economic Growth
- Cite this article as:
- Scully, G.W. Public Choice (2002) 113: 77. doi:10.1023/A:1020308831424
- 863 Downloads
This study investigates the role that economicfreedom plays in economic growth and in the distribution in marketincome, the role of government policy in advancingeconomic progress and in promoting income equality, and the effectthat the rate of economic progress has on thedistribution of market income. Structural and reduced formmodels are estimated that reveal that economic freedompromotes both economic growth and equity, and that there is apositive but relatively small trade-off between growth andincome inequality.