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The Guarantees of Freedom

National Bureau of Economic ResearchPublished 1 January 2002Open access
Rafael La Porta, Florencio Lopez-de-Silane, Cristian Pop‐Eleches, Andrei Shleifer
Citations14
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Abstract

distinguishes the institutions of English freedom, which guarantee the independence of judges from political interference in the administration of justice, from those of American freedom, which allow judges to restrain law-making powers of the sovereign through constitutional review. We create a data base of constitutional rules in 71 countries that reflect these institutions of English and American freedom, and ask whether these rules predict economic and political freedom in a cross-section of countries. We find that the English institutions of judicial independence are strong predictors of economic freedom and weaker predictors of political freedom. The American institutions of checks and balances are strong predictors of political but not of economic freedom.

Keywords

Social SciencesEconomics, Econometrics and Finance