Economic Behavior, Economic Freedom, and Entrepreneurship
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Economic Behavior, Economic Freedom, and Entrepreneurship

Edited by Richard J. Cebula, Joshua Hall, Franklin G. Mixon Jr and James E. Payne

Expert editors add to an important field of research, the economics of entrepreneurship, and explore how institutions influence entrepreneurial behavior. This book provides comprehensive and contemporary insights into the interaction between economic behavior of firms and households, economic freedom, and entrepreneurship, and how it generates an environment with greater opportunities for growth and development for individuals, households, and private-sector firms.
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Chapter 4: Sub-national indices of economic freedom

Dean Stansel and Jamie Bologna

Abstract

The literature on economic freedom has primarily focused on nations, where differences are largest. However, though the differences in economic freedom within individual nations are smaller, there are numerous advantages of examining issues at the sub-national level. In this chapter we discuss theses sub-national indices of economic freedom and issues related to their use by empirical researchers. For example, there are much smaller differences in culture and other institutions that are difficult to quantify and thereby include in an econometric model. In addition, the geographic boundaries are at least somewhat less arbitrary, particularly at the metropolitan area level. We argue that the existence of the sub-national indices of economic freedom provide great opportunities for future research on important issues regarding the relationship between governmental institutions and a variety of economic outcomes.

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