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.
"DO ‘LABOUR’ COUNCILS LOWER ECONOMIC FREEDOM?,"
Bulletin of Monetary Economics and Banking: Vol. 21:
2, Article 5.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss2/5