Tuesday, December 19, 2006
Freedom and national wealth are empirically indistinguisable: Continuing my exploration of cross-national data, I noticed an extraordinarily large correlation between economic freedom and per capita GDP. Sample size was between 30 and 40, and the measures were normally distributed. The Pearson correlation was almost .90. Translation: national wealth and market freedom are almost empirically indistinguishable here. Where you have one, you will have the other.