The Cato Journal

The Cato Journal is a leading free-market public policy journal. The Cato Journal features articles discussing politics and the economy of interest to scholars and professionals but accessible to a general audience as well.

Articles from Vol. 23, No. 2, Fall

Aid, Policies, and Growth: Bauer Was Right
The late Peter Bauer was a giant in development economics. By the end of his life he had convinced many in the economics profession that it is simply untrue that developing countries can break out of the poverty trap only by receiving foreign aid from...
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A Simple Solution to China's Pension Crisis
The reform of China's social security system is a critical component of China's overall economic reform. There are many problems and challenges in the current Chinese pension system. China is experiencing a rapidly aging population. The one-child policy...
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Deposit Insurance and Banking Crises in the Short and Long Run
There has been a rising global trend for countries, especially in the emerging economies, to institute explicit deposit insurance schemes in the last two decades. During this period, financial markets in the world have been frequently plagued by instabilities...
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Economic Growth and Freedom: A Causality Study
Each year the Fraser Institute and the Heritage Foundation (in conjunction with the Wall Street Journal) publish indexes of economic freedom, while the Freedom House publishes an index of political freedom around the world (Gwartney and Lawson 2002;...
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Entrenching Economic Freedom in Africa
In the 1950s and 1960s, many Africans believed that independence would change prospects for rapid economic growth and development. First, independence implied the end of colonialism and its despotic, exploitative, and repressive institutions. Second,...
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Explaining Botswana's Success: The Critical Role of Post-Colonial Policy
Most economists agree that private property, the rule of law, and free markets are crucial for economic development, but there is still disagreement over what other factors determine why some nations are rich while others are poor. Jeffrey Sachs (2001)...
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F. A. Hayek and the Common Law
One of the most significant insights into the history of Anglo-American law offered by F. A. Hayek concerns the superiority of common over statute law in framing a free society. Hayek's Legal Theory English common law, like much medieval law,...
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Replacing the Corporate Income Tax with a Cash-Flow Tax
Americans have been inundated with financial scandals at large corporations during the past two years. In many cases, unethical behavior and poor oversight of corporate management are to blame. But the corporate income tax has also been a key source...
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The Contribution of Economic Freedom to World Economic Growth, 1980-99
Since 1986, a group of researchers associated with the Fraser Institute have focused on the definition and measurement of an internationally comparable index of economic freedom (Easton and Walker 1992; Gwartney, Block, and Lawson 1996). This work...
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The Failure of Development Aid
In the last half century, developed countries have paid increasing attention to the problems of developing countries. Not only has the disastrously low level of economic development in large parts of the world become apparent over time, but also all...
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