Free market economy

Is the market or prices free? Theory and evidence from the United States

Bibliographic Data

ID2779433
AuthorsRıdvan Karacan (0000-0002-4148-0069, Department of Economy University of Kocaeli Kocaeli Turkey, corresponding author), Mehmet Emin Yardımcı (0000-0002-2896-8342, Department of Economy, Faculty of Science Kocaeli University Kocaeli Turkey)
Year2024
Volume83
Issue1
Pages59-74
Publication date2024-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Economics and Sociology (JOURNAL)
Journal identifiersISSN: 0002-9246 • E-ISSN: 1536-7150
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ajes.12513
OpenAlexW4376286351
LanguageEN
Citations received3
References cited67

Global price increases have reached their highest levels in recent times. Finding the reasons for the price increase is very important for economic stabilization. In this paper, it has been estimated that exorbitant price increases may be related to a free market economy. For this purpose, unlike other studies, a comparative analysis of the impact of the free market economy on prices was conducted. The study covers the period 1990-2020, and using the U.S. economy, which is a free market economy, the relationship between property rights, the size of government in the economy, and prices were examined using the autoregressive distributed lag model. The results show that the free market model has a positive effect on the price increase, while the size of the government's economy does not affect the price increase in the same direction. This study aims to provide a different perspective to policymakers in the fight against price instability, which is one of the most important problems facing the economy

Distributed lag · Econometrics · Economics · Economy · Free market · Government (linguistics) · Market economy · Market price · Microeconomics · Monetary economics · Price level · Energy, Environment, Economic Growth · Market Dynamics and Volatility · Monetary Policy and Economic Impact

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