Or: Why the Heritage Freedom Index is a Damned Statistical Lie
This guest post was contributed by StatsGuy, a frequent commenter and occasional guest on this blog. It shows how quickly the headline interpretation of statistical measures breaks down once you start peeking under the covers.
Recently, a controversy raged in the blogosphere about whether neo-liberalism has been a bane or a boon for the world economy. The argument is rather coarse, in that it fails to distinguish between the various elements of neo-liberalism, or moderate deregulation vs. extreme deregulation. But if we take the argument at face value, one of the major claims of neoliberals is that countries in the world which are more neoliberal are more successful (because they are more neoliberal). I disagree.
My disagreement is not with the raw correlation between the Heritage Index and Per Capita GDP. A number is a number. My disagreement is with the composition of the index itself, and interpreting this correlation as causation between neo-liberalism and ‘good things.’
My primary contention below is that many of these measures used in the composite Heritage Index have nothing to do with less government, and a lot more to do with good government. It is these measures of good government that correlate to economic growth and drive the overall correlation between the “Freedom Index” and positive outcomes. Secondarily, I will argue that many of the other items in the index (like investment freedom) are not causes of growth, but rather outcomes of growth.


Same-Sex Marriage and Time
Yesterday Maine voted to restrict marriage to opposite-sex couples. It’s a sad day for people who believe that all couples who love each other should be allowed to marry, full stop.
But the chart below may cushion the blow a tiny bit. It’s from a paper by Jeffrey Lax and Justin Phillips, “Gay Rights in the States: Public Opinion and Policy Responsiveness,” recently published in the American Political Science Review (via The Monkey Cage). What you are seeing is support for same-sex marriage in 1994-96, 2003-04, and 2008-09; solid dots indicate that same-sex marriage is equal, hollow dots that it is not.
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