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Therese Nilsson. Photo.

Therese Nilsson

Professor

Therese Nilsson. Photo.

Does Economic Freedom Foster Tolerance?

Author

  • Niclas Berggren
  • Therese Nilsson

Summary, in English

Abstract in Undetermined
Tolerance has the potential to affect both economic growth and wellbeing. It is therefore important to discern its determinants. We contribute to the literature by investigating whether the degree to which economic institutions and policies are market-oriented is related to different measures of tolerance. Cross-sectional and first-difference regression analysis of up to 69 countries reveals that economic freedom is positively related to tolerance towards homosexuals, especially in the longer run, while tolerance towards people of a different race and a willingness to teach kids tolerance are not strongly affected by how free markets are. Stable monetary policy and outcomes is the area of economic freedom most consistently associated with greater tolerance, but the quality of the legal system seems to matter as well. Through instrumental variables and first-difference results we find indications of a causal relationship.

Department/s

  • Department of Economics
  • Centre for Economic Demography

Publishing year

2013

Language

English

Pages

177-207

Publication/Series

Kyklos

Volume

66

Issue

2

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economic History
  • Economics

Status

Published

ISBN/ISSN/Other

  • ISSN: 0023-5962