Re-examination of price level differentials using economic freedom index
Findings reported in this paper provide improved explanation as to what factors are correlated with price levels across a large sample of 152 countries. The results are obtained from using a new set of variables called economic freedom indices, covering 19 years. Prior studies used income, trade ope...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Routledge
2016
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| Online Access: | http://psasir.upm.edu.my/id/eprint/53746/ http://psasir.upm.edu.my/id/eprint/53746/1/Re-examination%20of%20price%20level%20differentials%20using%20economic%20freedom%20index.pdf |
| _version_ | 1848852365896056832 |
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| author | Shaar, Karam Syed Mohamed, Mohamed Ariff |
| author_facet | Shaar, Karam Syed Mohamed, Mohamed Ariff |
| author_sort | Shaar, Karam |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Findings reported in this paper provide improved explanation as to what factors are correlated with price levels across a large sample of 152 countries. The results are obtained from using a new set of variables called economic freedom indices, covering 19 years. Prior studies used income, trade openness, and productivity, which led to results with much less explanatory power compared to findings reported in this paper. We apply advanced panel data econometrics to obtain robust estimates of parameters, which, in our view, led to results with substantially high coefficient of variations close to 90%. The findings show that all the nine dimensions of economic freedom used in this study significantly account for the variations in national price levels. |
| first_indexed | 2025-11-15T10:36:56Z |
| format | Article |
| id | upm-53746 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:36:56Z |
| publishDate | 2016 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-537462018-01-15T02:36:37Z http://psasir.upm.edu.my/id/eprint/53746/ Re-examination of price level differentials using economic freedom index Shaar, Karam Syed Mohamed, Mohamed Ariff Findings reported in this paper provide improved explanation as to what factors are correlated with price levels across a large sample of 152 countries. The results are obtained from using a new set of variables called economic freedom indices, covering 19 years. Prior studies used income, trade openness, and productivity, which led to results with much less explanatory power compared to findings reported in this paper. We apply advanced panel data econometrics to obtain robust estimates of parameters, which, in our view, led to results with substantially high coefficient of variations close to 90%. The findings show that all the nine dimensions of economic freedom used in this study significantly account for the variations in national price levels. Routledge 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/53746/1/Re-examination%20of%20price%20level%20differentials%20using%20economic%20freedom%20index.pdf Shaar, Karam and Syed Mohamed, Mohamed Ariff (2016) Re-examination of price level differentials using economic freedom index. Journal of International Trade and Economic Development, 25 (6). pp. 880-896. ISSN 0963-8199; ESSN: 1469-9559 http://www.tandfonline.com/doi/abs/10.1080/09638199.2015.1137345 10.1080/09638199.2015.1137345 |
| spellingShingle | Shaar, Karam Syed Mohamed, Mohamed Ariff Re-examination of price level differentials using economic freedom index |
| title | Re-examination of price level differentials using economic freedom index |
| title_full | Re-examination of price level differentials using economic freedom index |
| title_fullStr | Re-examination of price level differentials using economic freedom index |
| title_full_unstemmed | Re-examination of price level differentials using economic freedom index |
| title_short | Re-examination of price level differentials using economic freedom index |
| title_sort | re-examination of price level differentials using economic freedom index |
| url | http://psasir.upm.edu.my/id/eprint/53746/ http://psasir.upm.edu.my/id/eprint/53746/ http://psasir.upm.edu.my/id/eprint/53746/ http://psasir.upm.edu.my/id/eprint/53746/1/Re-examination%20of%20price%20level%20differentials%20using%20economic%20freedom%20index.pdf |