Digital Library

of the European Council for Modelling and Simulation



A Model For The Measurement Of Economic Freedom


Ángel Díaz, José Luis Montes

Published in:


ECMS 2008 Proceedings

Edited by: Loucas S. Louca, Yiorgos Chrysanthou, Zuzana Oplatkova, Khalid Al-Begain


ISBN: 978-0-9553018-6-5

Doi: 10.7148/2008


22nd European Conference on Modelling and Simulation,

Nicosia, June 3-6, 2008


Citation format:

Diaz, A. (2008). A Model For The Measurement Of Economic Freedom. ECMS 2008 Proceedings edited by: L. S. Louca, Y. Chrysanthou, Z. Oplatkova, K. Al-Begain (pp. 357-360). European Council for Modeling and Simulation. doi:10.7148/2008-0357



The paper presents, by means of a structural equations model, an account of the economic freedom factors and their importance. Considering that economic freedom manifests through: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. Results show that all the considered freedoms have statistical significance, being the most influential the ones related to the property rights and the freedom from corruption. Besides, an objective economic freedom index is developed through a new, structural equations based, methodology.

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