An ordinal ranking of economic institutions. Issue 26 (2nd June 2016)

• Record Type: Journal Article
• Authors: Beaulier, Scott; Elder, Robert; Han, Cheryl; Hall, Joshua C.
• Is Part Of: Applied economics. Volume 48:Issue 26(2016)
• Page Start: 2482
• Page End: 2490
• Publication Date: 2016-06-02
• Subjects: Economic freedom -- ordinal -- Net Dominance Metric; E00 -- O23; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2015.1122736
• Languages: English
• ISSNs: 0003-6846

Abstract

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.