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Neoliberal reforms contribute to higher incomes, Jeremy Horpedahl notes
A recent paper highlighted by Jeremy Horpedahl examines the effects of neoliberal reforms, specifically increases in economic freedom, in countries that implemented such policies. The research finds that adopting principles of the so-called Washington Consensus corresponds with rising incomes in those countries.
According to Horpedahl, the study focuses on nations that undertook major policy changes, providing a clearer view of the impact of these reforms. The authors of the paper conclude that income levels tend to increase following the implementation of economic freedom measures.
Horpedahl has previously noted that median income typically stands at about 80 percent of mean income across countries, highlighting a tight correlation between the two measures (link). In a separate post, he observed that oil prices rose 20 percent in a single day and climbed 66 percent over the month, well above usual seasonal trends (link). These observations provide additional context for his focus on economic indicators.
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