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. 26, No. 1, Winter

Coase, Demsetz, and the Unending Externality Debate
Economists, trained in the study of markets, learn early of various problems grouped under the heading of "market failure"--situations that, at least potentially, could justify government intervention to solve them. Cartels and monopolies, for example,...
Contradictory Incentives in the Medicare+Choice Medical Savings Account Program
With the creation of the Medicare+Choice program (M+C), the Balanced Budget Act of 1997 (BBA) instituted one of the largest changes to Medicare managed care since Medicare's inception. The Medicare+Choice program encompassed a variety of measures designed...
Corruption and Human Development
Corruption, defined as the misuse of public power (office) for private benefit, is most likely to occur where public and private sectors meet. In other words, it occurs where public officials have a direct responsibility for the provision of a public...
Does a Less Active Central Bank Lead to Greater Economic Stability? Evidence from the European Monetary Union
On January 1, 1999, 11 European countries gave up the independence of their monetary policy by joining the European Monetary Union (EMU). Since that time, these countries have shared a common currency, the euro, and, more important, are all now under...
Does Foreign Aid Help?
Recently, Sachs et al. (2004) have argued in favor of a massive increase in foreign aid to Africa in order to escape from a supposed poverty trap. They propose to increase the capital stock in one step, through a large, well-targeted infusion of foreign...
Does Gun Control Reduce Crime or Does Crime Increase Gun Control?
Advocates argue that gun control laws reduce the incidence of violent crimes by reducing the prevalence of firearms. Gun laws control the types of firearms that may be purchased, designate the qualifications of those who may purchase and own a firearm,...
How Global Investors Might Rid Themselves of Asian-Type Crises
Recent debate about reforming the international financial architecture to handle financial crises in emerging markets typically focuses on the relationship between officials. That is, what will finance ministers from developed countries and officials...
Rent Seeking in U.S.-Mexican Avocado Trade
This article examines the use of sanitary and phytosanitary (SPS) standards as a method for protectionism through the lens of political economy. Technical measures, especially SPS, remain a potential barrier to free trade, in spite of substantial progress...
Road Pricing in Singapore after 30 Years
Traffic congestion continues to be a serious problem in major cities around the world. Congestion results not only in time lost while sitting in traffic jams. It also constitutes a disruption to company supply chains and the general flow of commerce....
The Impact of Indirect Government Controls on U.S. Drug Prices and R&D
In this article, we hypothesize that the growth of real drug prices in the United States may have been slowed over time because of indirect government controls taking the form of moral suasion, political threats, and crowding-out. We argue that these...