Does free trade really reduce growth? Further testing using the economic freedom index

While studies of the relationship between economic freedom and economic growth have shown it to be positive, significant and robust, it has rightly been argued that different areas of economic freedom may have quite different effects on growth. Along that line, Carlsson and Lundström (2002) present the surprising result that “International exchange: Freedom to trade with foreigners” is detrimental for growth. We find that “Taxes on international trade” seems to drive this result. However, using newer data and a more extensive sensitivity analysis, we find that it is not robust. Least Trimmed Squares-based estimation in fact renders the coefficient positive.free trade; economic freedom; economic growth

Does Free Trade Really Reduce Growth? Further Testing Using the Economic Freedom Index

While studies of the relationship between economic freedom and economic growth have shown it to be positive, significant and robust, it has rightly been argued that different areas of economic freedom may have quite different effects on growth. Along that line, Carlsson and Lundström (2002) present the surprising result that “International exchange: Freedom to trade with foreigners” is detrimental for growth. We find that “Taxes on international trade” seems to drive this result. However, using newer data and a more extensive sensitivity analysis, we find that it is not robust. Least Trimmed Squares-based estimation in fact renders the coefficient positive.free trade; economic freedom; economic growth

Free to Trust? Economic Freedom and Social Capital

We present new evidence on how generalized trust is formed. Unlike previous studies, we look at the explanatory power of economic institutions, we use newer data, we incorporate more countries, and we use instrumental variables to handle the causality problem. A central result is that legal structure and security of property rights (area 2 of the Economic Freedom Index) increase trust. The idea is that a market economy, building on voluntary transactions and interactions with both friends and strangers within the predictability provided by the rule of law, entails both incentives and mechanisms for trust to emerge between people.social capital; trust; economic freedom; rule of law; property rights; legal system

Trust and Growth: A Shaky Relationship

We conduct an extensive robustness analysis of the relationship between trust and growth by investigating a later time period and a bigger sample than in previous studies. In addition to robustness tests that focus on model uncertainty, we systematize the investigation of outlier influence on the results by using the robust estimation technique Least Trimmed Squares. We find that when outliers (especially China) are removed, the trust-growth relationship is no longer robust. On average, the trust coefficient is half as large as in previous findings.Trust; Growth; Robustness; Social Capital; Outliers

The Looks of a Winner: Beauty, Gender and Electoral Success

We study the role of beauty in politics. For the first time, focus is put on differences in how women and men evaluate female and male candidates and how different candidate traits relate to success in real and hypothetical elections. We have collected 16,218 assessments by 2,772 respondents of photos of 1,929 Finnish political candidates. Evaluations of beauty explain success in real elections better than evaluations of competence, intelligence, likability, or trustworthiness. The beauty premium is larger for female candidates, in contrast to findings in previous labor-market studies.Beauty; Gender; Elections; Political candidates; Beauty premium

Faces of Politicians: Babyfacedness Predicts Inferred Competence but Not Electoral Success

Recent research has documented that competent-looking political candidates do better in U.S. elections and that babyfaced individuals are generally perceived to be less competent than maturefaced individuals. Taken together, this suggests that babyfaced political candidates are perceived as less competent and therefore fare worse in elections. We test this hypothesis, making use of photograph-based judgments by 2,772 respondents of the facial appearance of 1,785 Finnish political candidates. Our results confirm that babyfacedness is negatively related to inferred competence in politics. Despite this, babyfacedness is either unrelated or positively related to electoral success, depending on the sample of candidates.Babyfacedness; Competence; Beauty; Trustworthiness; Elections

Faces of politicians: Babyfacedness predicts inferred competence but not electoral success

Recent research has documented that competent-looking political candidates do better in U.S. elections and that babyfaced individuals are generally perceived to be less competent than maturefaced individuals. Taken together, this suggests that babyfaced political candidates are perceived as less competent and therefore fare worse in elections. We test this hypothesis, making use of photograph-based judgments by 2,772 respondents of the facial appearance of 1,785 Finnish political candidates. Our results confirm that babyfacedness is negatively related to inferred competence in politics. Despite this, babyfacedness is either unrelated or positively related to electoral success, depending on the sample of candidates.Babyfacedness; Competence; Beauty; Trustworthiness; Elections

The Looks of a Winner: Beauty, Gender, and Electoral Success

We study the role of beauty in politics using candidate photos that figured prominently in electoral campaigns. Our investigation is based on visual assessments of 1,929 Finnish political candidates from 10,011 respondents (of which 3,708 were Finnish). An increase in beauty by one standard deviation is associated with an increase of 17–20 percent in the number of votes for the average non-incumbent candidate. The relationship is virtually always statistically significant for female candidates, and in most specifications also for male candidates.beauty, gender, elections, political candidates, beauty premium

The Political Opinions of Swedish Social Scientists

We study the political opinions of Swedish social scientists in seven disciplines. A survey was sent to 4,301 academics at 25 colleges and universities, which makes the coverage of the disciplines included more or less comprehensive. When it comes to party sympathies there are 1.3 academics on the right for each academic on the left – a sharp contrast to the situation in the United States, where Democrats greatly dominate the social sciences. The corresponding ratio for Swedish citizens in general is 1.1. The most left-leaning disciplines are sociology and gender studies, the most right-leaning ones are business administration, economics, and law, with political science and economic history somewhere in between. The differences between the disciplines are smaller in Sweden than in the more polarized U.S. We also asked 14 policy questions. The replies largely confirm the pattern of a left-right divide – but overall the desire to change the status quo is tepid.Academics; Social Scientists; Policy Views; Political Opinions; Party Sympathies

Trust and Growth in the 1990s: A Robustness Analysis

We conduct an extensive robustness analysis of the relationship between trust and growth for a later time period (the 1990s) and with a bigger sample (63 countries) than previous studies. In addition to robustness tests that focus on model uncertainty, we use Least Trimmed Squares, a robust estimation technique, to identify outliers and investigate how they affect the results. We find that the trust-growth relationship is less robust with respect to empirical specification and to countries in the sample than previously claimed, and that outliers affect the results. Nevertheless trust seems quite important compared with many other growth-regression variables.trust; growth; robustness analysis; extreme bounds analysis; social capital; least trimmed squares; outliers