Free to Grow? A Matching Methods Analysis of Jumps in US State-Level Economic Freedom

This paper contributes to the literature that uses the Economic Freedom of North America (EFNA) index to evaluate relationships with various outcomes. Most of the literature estimates a linear relationship between economic freedom and those outcomes. However, using matching methods can be a better way to address potential selection bias issues. I examine the effects of five-year sustained jumps in EFNA scores on subsequent GDP per capita growth. My results show slight evidence for a short-term boost in income. However, these results are not robust and are largely contingent on the matching method used