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There is a large literature estimating the effect of economic freedom on economic growth or income levels. Most studies examine the relationship between economic freedom and growth or income levels for countries, while a few examine the relationship for U.S. states. Absent in the state-level literature is consideration of the presence of spatial spillovers affecting the freedom-income relationship. Neglecting to account for spatial autocorrelation can bias estimation results and therefore inferences drawn. We find evidence of a spatial pattern in real per-capita gross state product (GSP) that affects nonspatial estimates of the freedom-income relationship. Taking into account the direct and indirect effects of economic freedom on real per-capita GSP, we find a 10% increase in economic freedom is associated with a 5% increase in real per-capita GSP. {JEL E02, 047, R11), I. INTRODUCTIONThe role that market-oriented institutions play in determining long-run economic prosperity has recently come to the forefront of the economics profession. In recent years the development of cross-country measures [...]

The growth of the income of the poor during a period of economic growth can only be measured by examining household survey data. A guide to interpreting estimates from household survey data of the income of the poor is presented.

Earnings mobility can be consistently estimated with the use of dynamic pseudo-panel estimation. The use of this method to study the earnings mobility in Mexico is discussed.

A regression analysis shows that a ten percent reduction in households owning automobiles would reduce the square mile of an urban area by only 0.5 percent and its population density by 0.7 percent. It is also found that a ten percent reduction of per capita income would reduce the urban area by 11.4 percent and raise the population density by 10.1 percent.

Each year, we report on the approved SOI budget for the current year, in this case, Fiscal Year (FY) 2004. The current budget for FY 2004 is $41.3 million. For [...]