The economic freedom of a province or U.S. state such as Ontario or California declines when their aggregate population exceeds 9.5 million people, often resulting in higher government spending, higher taxes, and less flexible labour markets, a new study reveals.
The Fraser Institute study (pdf), titled “The Determinants of Subnational Economic Freedom,” analyzed 158 provinces and states in seven countries to determine the correlation between the population size of a province or a state and their economic freedom. It aims to provide “the first-ever multi-country, comprehensive examination of the determinants of subnational economic freedom scores.”
