The Economics of Freedom
Theory, Measurement, and Policy Implications

This book develops a measure of Autonomy Freedom and sheds light on its consequences for policy and political design.

Sebastiano Bavetta (Author), Pietro Navarra (Author)

9781107507241, Cambridge University Press

Paperback / softback, published 5 March 2015

222 pages, 19 b/w illus. 29 tables
22.9 x 15.2 x 1.3 cm, 0.33 kg

'Uniquely combining philosophical analysis, economic theory, and empirical research, The Economics of Freedom constitutes an important contribution to our understanding of the nature and value of freedom.' Martin van Hees, University of Groningen, The Netherlands

What is freedom? Can we measure it? Does it affect policy? This book develops an original measure of freedom called 'Autonomy Freedom', consistent with J. S. Mill's view of autonomy, and applies it to issues in policy and political design. The work pursues three aims. First, it extends classical liberalism beyond exclusive reliance on negative freedom so as to take autonomous behavior explicitly into account. Second, it grounds on firm conceptual foundations a new standard in the measurement of freedom that can be fruitfully coupled with existing gauges. Third, it shows empirically that individual preferences for redistribution and cross-country differences in welfare spending in Organisation for Economic Co-operation and Development (OECD) countries are driven by the degree of 'autonomy freedom' that individuals enjoy. By means of an interdisciplinary approach and a sophisticated econometric methodology, the book takes an explicit stand in defense of freedom and sets the basis for a liberalism based upon people's actions and institutions.

1. Introduction
Part I. Concepts and Tools: 2. Choice and freedom
3. Measuring autonomy freedom
4. The empirical measure of autonomy
Part II. Autonomy Freedom and the Welfare State: 5. Why redistribute?
6. Autonomy freedom and redistribution
7. Autonomy freedom and welfare spending
8. Conclusion.

Subject Areas: Public finance [KFFD], Political economy [KCP], Economic theory & philosophy [KCA], Public administration [JPP]