Publication Date

2017

Abstract

Political instability is often exacerbated in periods of aggregate demand shortfall. It has been conjectured that inadequate policy responses to recessions may be inimical to free economic institutions. This paper uses the Economic Freedom of the World index as its measure of economic institutions, and finds that the change in economic freedom in the following five, ten, and fifteen years is negatively impacted by an aggregate demand shortfall as measured by negative NGDP growth.

Document Type

Article

Keywords

Economicinstitutions.Votingbehavior.Economicfreedom. Macroeconomicpoliticaleconomy

Disciplines

Business | Business and Corporate Communications | Business Intelligence | Business Law, Public Responsibility, and Ethics

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.