This book addresses a need: the most commonly employed Political Economy Indicators (PEIs) frequently give little useful information and lead to problematic results. This volume will examine measurement issues, relate PEIs to economic theory, and suggest better measures than at present.It is relevant for practitioners: the editors will deliver chapters that are readable for policy makers and journalists as well as economists.This edited volume seeks to provide a critical and technical look at international political economic indices (PEIs). It examines measurement issues, relates PEIs to economic theory, and suggests better measures than those currently used.
1 The Challenges of Measurement in Political Economy by King Banaian and Marta Podemska and Bryan Roberts 1
2 So You Want to Use a Measure of Openness? by H. Lane David 15
3 Measuring Central Bank Independence: Ordering, Ranking, or Scoring? by King Banaian 33
4 Fiscal Indicators by John E. Anderson 57
5 A New and Better Measure of Capital Controls by Pariyate Potchamanawong and Arthur T. Denzau and Sunil Rongala and Joshua C. Walton and Thomas D. Willett 81
6 Measuring Welfare by Bryan Roberts 103
7 Why and How to Move from Capturing Perception of to Quantifying Corruption? by Omer Gokcekus and Justin Myzie 139
8 New Interpretations of Indices of Economic Freedom by King Banaian and William Luksetich 155
9 On the Methodology of the Economic Freedom of the World Index by Robert A. Lawson 171
10 Government Structure, Strength, and Effectiveness by Joshua C. Walton and Apanard Angkinand and Marina Arbetman and Marie Besancon and Eric M. P. Chiu and Suzanne Danis and Arthur T. Denzau and Yi Feng and Jacek Kugler and Kristin Johnson and Thomas D. Willett
