Measuring%20differences%20among%20economic%20systems

Measuring%20differences%20among%20economic%20systems -...

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Measuring differences among economic systems Ways of classifying and measuring the economic performance of economies
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1. Degree of Economic Freedom The economic freedom index assesses how “free” a society is from government involvement or control over the economy. The freedom index number is computed by assessing the performance of the economy on each of the following 10 dimensions. 1. Trade policy 6. Banking policy 2. Taxation policy 7. Wage and price controls 3. Government spending 8. Property rights 4. Monetary policy 9. Regulation policy 5. Foreign investment & capital flows 10. Presence of a black market The freedom index is a number ranging from 1 to 5. 1 – means completely free 5 – means very repressed or controlled by govt.
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2. Growth Competitiveness The growth competitiveness index ( GCI ) assesses how able (and likely) an economy is to grow – or how well- poised it is for growth. The GCI is a composite of 3 sub-indices which assess the following environments within a economy . 1 . The economy’s ability to innovate & absorb foreign technology. 2. Governance: How free is government of corruption?
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.

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Measuring%20differences%20among%20economic%20systems -...

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