Economic liberty in the long run: Evidence from OECD countries

Leandro Prados de la Escosura 07 April 2014

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How has freedom evolved over time? A distinction has been made between ‘negative’ freedom – a lack of interference or coercion by others (freedom from) – and ‘positive’ freedom, the guarantee of access to markets that allow people to control their own existence (freedom to) (Berlin 1958). An example of negative freedom is economic liberty. A country is economically free to the extent that privately owned property is protected, contracts enforced, prices stable, barriers to trade small, and resources mainly allocated through the market (Friedman 1962).

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Topics:  Development

Tags:  OECD, protectionism, negative freedom, economic freedom, economic liberty