The index published in
Economic Freedom of the World
measures the degree to which the policies and institutions of
countries are supportive of economic freedom. The cornerstones of
economic freedom are personal choice, voluntary exchange, freedom
to compete, and security of privately owned property.
Forty-two data points are used to construct a summary
index and to measure the degree of economic freedom in five broad
areas: (1) size of government: expenditures, taxes, and
enterprises; (2) legal structure and security of property rights;
(3) access to sound money; (4) freedom to trade internationally;
and (5) regulation of credit, labor and business.