Public Choice

, Volume 130, Issue 1–2, pp 163–177 | Cite as

An Empirical Note on Economic Freedom and Income Inequality

Original Article

Abstract

I report estimates for a fixed-effects model of country-level Gini coefficients as a function of economic freedom along with relevant control variables. Gini coefficients are drawn from the UNU/WIDER World Income Inequality Database Version 2.0a, while economic freedom is measured by the Fraser Institute's Economic Freedom of the World index. Controls are included for per capita income, political structure, education, demographics, and industrial composition. Over a broad range of freedom, the estimated relation between economic freedom and income inequality is positive, statistically significant, but relatively inelastic.

Keywords

Economic freedom Income inequality Gini coefficient Equality Tradeoff Country panel 

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Copyright information

© Springer Science + Business Media B.V. 2006

Authors and Affiliations

  1. 1.Department of EconomicsCollege of the Holy CrossWorcesterUSA

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