Economic Freedom and Happiness in U.S. Metropolitan Areas

Document Type

Article

Publication Date

2025

Abstract

Economic freedom has been shown to be positively associated with economic growth and a multitude of other outcomes, including measures of individual subjective well-being. We provide the first local-level examination of that latter relationship by conducting a multi-faceted investigation into the relationship between economic freedom, measured at the U.S. metropolitan statistical area level, and subjective well-being measures in the Gallup daily polls and the General Social Survey. Like previous work looking at countries and states, our results show a generally positive association between economic freedom and subjective well-being. The association is robust to the inclusion of Bartik-style instruments to control for endogeneity. © 2025 Elsevier B.V., All rights reserved.

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