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


Using a panel of the UK counties, spanning the period 2010-2016, this study exploreswhether 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 ofeconomic freedom, i.e. size of government, sound money and the freedom to tradeinternationally. Using a regression discontinuity approach, we find strong evidencethat the political ideology of a council affects all three sub-components of economicfreedom. An implication of this result is that councils appeal to specific groups ofvoters when making policy.


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