The Constitution of Ambiguity: Is the Link between Economic Freedom and Constitutions Weaker than Thought?

Abstract

This paper follows up on the work of de Vanssay et al. (2005) in examining characteristics of constitutions (e.g., parliamentary systems), using data originating from the Database of Political Institutions. With updated data, correlational findings are reproduced and extended. However, introducing almost any degree of identification draws results strongly into question. Taking the evidence together, there are rather strong reasons against placing much confidence in a causal relationship between the broader array of constitutional characteristics and economic freedom. However, it is important to note that the variables considered here do not include direct measures of democracy or civil liberties, the positive effects of which have stronger support elsewhere in the literature.