Publication Date
1-1-2017
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
Creative Commons License
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