Lockdown Regulatory Freedom in Brazilian States

We present updated economic freedom scores for Brazilian states, tailored for researchers in the field. These scores are derived by integrating lockdown regulatory freedom (LRF) with the Índice Mackenzie de Liberdade Econômica Estadual (IMLEE), utilizing two distinct weighting schemes, as outlined in Miozzi (2023a, 2023b, 2024).

Our first method adds lockdown regulatory freedom as a new fourth dimension of economic freedom, with each of the eight pandemic restriction measures equally weighted within this new dimension. In this case, LRF makes up one-fourth of the total index. 

We do this for 2019, 2020, and 2021. In 2019, all LRF scores are 10 out of 10 so as to compare a consistent weighting scheme to the adjusted 2020 and 2021 scores. Had these restrictions been included in prior economic freedom measures they would, presumably, be columns of 10 since no states would have implemented Covid-related policies.

The second method revises the existing Dimension 3, which evaluates labor market regulations through three variables: minimum wage legislation, government employment, and union density. These indicators are restructured into a Labor Regulation component, equally weighted to form half of a state’s overall Regulation score. We then add the eight equally-weighted pandemic restrictions as a Lockdown Regulation component, making up the other half of the Regulation score. Here, LRF receives one-sixth of the weights. Likewise, we do this for 2019, 2020, and 2021.

We provide tables comparing the different weighting schemes and how each state’s ranking in economic freedom for 2020 and 2021 adjusts relative to its unadjusted rank.

Regardless of these metrics, our spreadsheets are available online [coming soon], enabling researchers to apply their own weighting schemes to the index as they see fit.