DO ‘LABOUR’ COUNCILS LOWER ECONOMIC FREEDOM?

  • Nicholas Apergis University of Piraeus
Keywords: Economic freedom, Political councils, Regression discontinuity approach, UK Countries

Abstract

Using a panel of the UK counties, spanning the period 2010-2016, this study explores
whether having a Labour or Conservative council affects a county’s economic freedom.
Due to data unavailability of any economic freedom index for the UK counties,
the analysis employed direct measures in relevance to three sub-components of
economic freedom, i.e. size of government, sound money and the freedom to trade
internationally. Using a regression discontinuity approach, we find strong evidence
that the political ideology of a council affects all three sub-components of economic
freedom. An implication of this result is that councils appeal to specific groups of
voters when making policy.

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Published
2018-10-31
How to Cite
Apergis, N. (2018). DO ‘LABOUR’ COUNCILS LOWER ECONOMIC FREEDOM?. Buletin Ekonomi Moneter Dan Perbankan, 21(2), 149-160. https://doi.org/10.21098/bemp.v21i1.958
Section
Articles