TITLE:
A Cross-State US Capitalism-Democracy-Rule of Law Economic Model
AUTHORS:
Dennis Ridley
KEYWORDS:
CDR Index, GSPppp, Capitalism, Democracy, Rule of Law, Entrepreneurship
JOURNAL NAME:
Theoretical Economics Letters,
Vol.15 No.2,
April
15,
2025
ABSTRACT: The United States (US) capitalism (C), democracy (D), rule of law (R) (CDR) economic model combines the degree of C, D and R associated with a particular state. In prior research, the CDR model was invented and computed for cross-country relationships. This paper computes a CDR model based on published US state C, rankings in D, and rankings in R, taking into account the effect of interactions between C, D and R. The CDR model explains per capita real gross state product (GSP) adjusted for purchasing power parity (GSPppp) with three policy variables namely C, D and R. Geographical latitude (L) is also significant. The model is referred to as the CDR model because C, D and R are policy variables that can be changed by policy makers, while geography is outside the control of policy makers.