Economic Freedom

Abstract

Economic freedom describes a particular condition in which the individual finds himself as a result of certain characteristics in his economic environment. Taking a simple formulation of decision-making in which it is assumed that the individual maximizes his satisfaction both as a consumer of private and government goods and services and as a supplier of factor services, his position may be depicted as follows:

$$ \operatorname{Max}\;{U}^i={U}^i\left({x}^i,{q}_k,{a}^i\right) $$