Skip to main content
×
×
Home

The Hayek–Friedman hypothesis on the press: is there an association between economic freedom and press freedom?

  • CHRISTIAN BJØRNSKOV (a1)
Abstract

The Hayek–Friedman hypothesis states that economic freedom is causally associated with stable democracy. I test a particular element of the hypothesis focusing on press freedom, which is arguably a necessary component of any democratic polity. Combining the Freedom House index of press freedom and the Heritage Foundation Index of Economic Freedom yields a large annual panel dataset between 1993 and 2011. Estimates show that improvements in economic freedom are associated with subsequent improvements of press freedom. The overall association is mainly driven by changes in market openness.

Copyright
Corresponding author
References
Hide All
Acemoglu, D. and Robinson, J. A. (2006), Economic Origins of Dictatorship and Democracy, Cambridge: Cambridge University Press.
Alves, A. A. and Meadowcroft, J. (2014), ‘Hayek's slippery slope, the stability of the mixed economy and the dynamics of rent-seeking’, Political Studies, 62 (4): 843–61.
Arrese, Á. (2017), ‘The role of economic journalism in political transitions’, Journalism, 18 (3): 368–83.
Berggren, N. (2003), ‘The benefits of economic freedom: a survey’, Independent Review, 8 (2): 193211.
Bergh, A. (2014), Sweden and the Revival of the Capitalist Welfare State, Cheltenham: Edward Elgar.
Bjørnskov, C. (2015), ‘Does economic freedom really kill? On the association between ‘neoliberal policies’ and homicide rates’, European Journal of Political Economy, 37: 207219.
Bjørnskov, C. and Freytag, A. (2016), ‘An offer you can't refuse: murdering journalists as an enforcement mechanism of corrupt deals’, Public Choice, 167 (3–4): 221–43.
Brambor, T., Clark, W. R. and Golder, M. (2006), ’Understanding interaction models: Improving empirical analyses, Political Analysis, 14 (1): 6382.
Cheibub, J. A., Gandhi, J. and Vreeland, J. R. (2010), ‘democracy and dictatorship revisited’, Public Choice, 143 (1–2): 67101.
De Haan, J. and Sturm, J-E. (2003), ‘Does more democracy lead to greater economic freedom? New evidence for developing countries’, European Journal of Political Economy, 19 (3): 547–63.
De Soysa, I. and Vadlamannati, K. C. (2013), ‘Do pro-market reforms drive human rights violations? An empirical assessment, 1981–2006’, Public Choice, 155 (1–2): 163–87.
Djankov, S., McLiesh, C., Nenova, T. and Shleifer, A. (2003), ‘Who owns the media?’ Journal of Law and Economics, 46 (2): 341–81.
Dreher, A. (2006), ‘Does globalization affect growth? Empirical evidence from a new index’, Applied Economics, 38 (10): 1091–110.
Dutta, N. and Williamson, C. R. (2016), ‘Can foreign aid free the press?’ Journal of Institutional Economics, 12 (3): 603–21.
Egorov, G., Guriev, S. and Sonin, K. (2009), ‘Why resource-poor dictators allow freer media: a theory and evidence from panel data’, American Political Science Review, 103 (4): 645–68.
Enikolopov, R. and Petrova, M. (2016), ‘Media capture: empirical evidence’, in Anderson, S. P., Strömberg, D., and Waldfogel, J. (eds), Handbook of Media Economics, Amsterdam: Elsevier, Chapter 17.
Farrant, A. and McPhail, E. (2009), ‘Hayek, Samuelson, and the logic of the mixed economy?’ Journal of Economic Behavior & Organization, 69 (1): 516.
Freedom House (2015), Freedom of the Press 2015, Washington DC: Freedom House.
Friedman, M. (1962), Capitalism and Freedom, Chicago: Chicago University Press.
Giavazzi, F. and Tabellini, G. (2005), ‘Economic and political liberalizations’, Journal of Monetary Economics, 52 (7): 1297–330.
Gwartney, J. D., Lawson, R. A. and Hall, J. (2015), Economic Freedom of the World. 2015 Annual Report. Vancouver BC: Economic Freedom Network.
Hahnel, R. (2009), ‘Why the market subverts democracy’, American Behavioural Scientist, 52 (7): 1006–22.
Hall, J. and Lawson, R. A. (2014), ‘Economic freedom of the world: An accounting of the literature’, Contemporary Economic Policy, 32 (1): 119.
Hayek, F. (1944), The Road to Serfdom, Chicago: Chicago University Press.
Hayek, F. (1960), The Constitution of Liberty. London: Routledge.
Henisz, W. (2002), ‘The institutional environment for infrastructure investment’, Industrial and Corporate Change, 11 (2): 355–89.
Heritage Foundation (2015), 2015 Index of Economic Freedom: Promoting Economic Opportunity and Prosperity, Washington DC: Heritage Foundation and Wall Street Journal.
Heston, A., Summers, R. and Aten, B. (2012), Penn World Tables Version 7.1, Philadelphia: Center for International Comparisons of Production, Income and Prices, University of Pennsylvania.
Justesen, M. K. (2014), ‘Better safe than sorry: how property rights and veto players jointly affect economic growth’, Comparative Politics, 46 (2): 147–67.
Keefer, P. and Stasavage, D. (2003), ‘The limits of delegation: veto players, central bank independence and the credibility of monetary policy’, American Political Science Review, 97 (3): 407–23.
Kerr, G. (2013), ‘Property-owning democracy and the priority of liberty’, Analyse und Kritik, 35 (1): 7192.
Lawson, R. A. and Clark, J. R. (2010), ‘Examining the Hayek–Friedman hypothesis on economic and political freedom’, Journal of Economic Behavior & Organization, 74 (3): 230–9.
Leeson, P. T. (2008), ‘Media freedom, political knowledge, and participation’, Journal of Economic Perspectives, 22 (2): 155–69.
Leeson, P. T. and Coyne, C. J. (2005), ‘Manipulating the media’, Institutions and Economic Development, 1 (2): 6792.
Morlino, L. (2004), ‘What is “good” democracy?Democratization, 11 (5):1032.
Mousseau, M. (2000), ‘Market prosperity, democratic consolidation, and democratic peace’, Journal of Conflict Resolution, 44 (4): 472507.
Munoz, B. (2013), ‘The media and the citizen in Venezuela’, New Yorker, August.
Møller, J. and Skaaning, S.-E. (2013), ‘Autocracies, democracies, and the violation of civil liberties’, Democratization, 20 (1): 82106.
Nizalova, O. Y. and Murtazashvili, I. (2016), ‘Exogenous treatment and endogenous factors: vanishing of omitted variable bias on the interaction term’, Journal of Econometric Methods, 5 (1): 71–7.
Nyström, K. (2008), ‘The institutions of economic freedom and entrepreneurship: evidence from panel data’, Public Choice, 136 (3–4): 269–82.
Olssen, M. (2010), Liberalism, Neoliberalism, Social Democracy. Thin Communitarian Perspectives on Political Philosophy and Education, New York: Routledge.
O'Reilly, C. and Powell, B. (2015), ‘War and the growth of government’, European Journal of Political Economy, 40: 3141.
Petrova, M. (2011), ‘Newspapers and Parties: how advertising revenues created an independent press’, American Political Science Review, 105 (4): 790808.
Pitlik, H., Redin, D. M. and Rode, M. (2015), ‘Economic freedom, individual perceptions of life control, and life satisfaction’, in Gwartney, J. D., Lawson, R. A., and Hall, J. (eds), Economic Freedom of the World: 2015 Annual Report, Vancouver: Fraser Institute, pp. 185202.
Pryor, F. L. (2010), ‘Capitalism and freedom?’ Economic Systems, 34 (1): 91104.
Reich, R. (2009), ‘How capitalism is killing democracy’, Foreign Policy, 12.
Rode, M. and Gwartney, J. D. (2012), ‘Does democratization facilitate economic liberalization?’ European Journal of Political Economy, 28 (4): 607–19.
Samuelson, P. A. (1970, Economics (8th edition), New York: McGraw-Hill.
Sen, A. K. (1997), ‘Democracy as a universal value’, Journal of Democracy, 10 (3): 317.
Stier, S. (2015), ‘Democracy, autocracy, and the news: the impact of regime type on media freedom’, Democratization, 22 (7): 1273–95
Stilz, A. (2014), ‘Is the free market fair?Critical Review, 26 (3–4): 423–38.
Strömberg, D. (2015), ‘Media and politics’, Annual Review of Economics, 7: 173205.
Zencey, E. (2012), The Other Road to Serfdom and the Path to Sustainable Democracy, Hanover: University Press of New England.
Zingales, L. (2012), A Capitalism for the People: Recapturing the Lost Genius of American Prosperity, New York: Basic Books.
Wintrobe, R. (1998), The Political Economy of Dictatorship, Cambridge: Cambridge University Press.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Institutional Economics
  • ISSN: 1744-1374
  • EISSN: 1744-1382
  • URL: /core/journals/journal-of-institutional-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed