Abstract
The paper presents, by means of a structural equations model, an account of the economic freedom factors and their importance. Considering that economic freedom manifests through: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. Results show that all the considered freedoms have statistical significance, being the most influential the ones related to the property rights and the freedom from corruption. Besides, an objective economic freedom index is developed through a new, structural equations based, methodology.
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