The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Economic Freedom

  • Alan Peacock
Reference work entry


Economic freedom describes a particular condition in which the individual finds himself as a result of certain characteristics in his economic environment. Taking a simple formulation of decision-making in which it is assumed that the individual maximizes his satisfaction both as a consumer of private and government goods and services and as a supplier of factor services, his position may be depicted as follows:
$$ \operatorname{Max}\;{U}^i={U}^i\left({x}^i,{q}_k,{a}^i\right) $$
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Alan Peacock
    • 1
  1. 1.