Institutions of the Mind: Comparing Index-Based and Perceived Economic Freedom as Predictors of Entrepreneurship and GDP

Our project aims to examine how individuals and businesses perceive economic freedom and how those perceptions differ from traditional measures based on institutional characteristics. Existing indices, such as the Fraser Institute’s Economic Freedom of North America (EFNA), rely entirely on quantifying policy variables, where data about government spending, taxation, labor regulation, legal quality, monetary stability, and trade openness are used to assess economic freedom. We will design a survey containing items closely aligned with the EFNA's core areas, with a particular focus on government spending, taxation, and labor market freedom.