The study factored in more than 140 variables, from taxes to environmental regulations to tort laws to property rights. The rankings are based on five types of government intervention in markets: fiscal, regulatory, judicial, size of government and welfare.

The study was compiled by two Clemson University economists and directed by the director of business and economic studies at PRI.

Rankings are available at www.pacificresearch.org

Alabama has the most economic freedom and New York the least, according to the study. Researchers noted that states with the most economic freedom tend to be in the Great Plains and Rockies, resulting in the region developing prosperous centers of high-end services and information technology. The Northeast and Upper Midwest are most restrictive, leaving businesses and customers "suffering," PRI said.

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Contributing: Brice Wallace

E-mail: mdecker@desnews.com