Our previous publication, “The Equation of Willingness,” highlights a missing equation from the Modern Portfolio Theory driving economic performance. The equation balances economic freedom and market integration. The first term favors a Schumpeterian growth, while the second, a Ricardian growth.
In this letter, we experiment with the equation throughout the world to identify countries and economic zones that have found the optimal trade-off for value creation.
And the winner is… Northern Europe.