Economic freedom and philanthropy

The correlations between economic freedom and human capabilities (e.g., income, health, education, happiness) are robust and well-documented. Current research has focused on whether exposure to free markets and economic freedom increases virtue or leads to moral decay. We explore the relationship between economic freedom and virtues like love and altruism, which are expressed through philanthropic donations to charity. Using panel data for US charitable donations from itemized tax returns and the Economic Freedom of North America (EFNA) Index, we examine the state-level correlation between economic freedom and philanthropy in America. Contrary to common discourse, which points to economic freedom as a source of cultural and civic erosion, we find a strong positive correlation between economic freedom and charitable giving.