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. 27, No. 1, Winter

Economic Freedom and Net Business Formation
Economic freedom indexes, especially the Fraser Institute/Cato Institute Economic Freedom of the World (EFW) index and the Heritage Foundation/Wall Street Journal Index of Economic Freedom, are becoming increasingly important as researchers seek to...
Fair Trade Coffee Enthusiasts Should Confront Reality
From university cafeterias to supermarkets in the developed world, people are buying Fair Trade (FT) coffee certified by the FLO-Cert, the certifying entity of Fairtrade Labelling Organizations International (FLO). The assumption is that such purchases...
Financial Crises, Liberalization, and Government Size
There is a broad consensus among economists that financial crises are costly, as evidenced by the Asian currency crisis in 1997 and other systemic crises during the 1990s (Hawkins 1999; Klingebiel and Laeven 2002). However, there is little agreement...
Global Imbalances: Do They Matter?
This article reviews the recent literature on global imbalances and discusses the policy implications of the various theories that have been advanced to explain their unprecedented increase. Most of these theories fit the stylized facts, namely, the...
Remuneration vs. Reelection: A Senatorial Balancing Act
Unique events often give rise to other unique events. Such was the case of Hurricane Katrina--the costliest and most destructive natural disaster in U.S. history. The resulting casualties and staggering damage estimates from the savage storm in late...
Stockholders and Stakeholders: The Battle for Control of the Corporation
The American corporation is in trouble not only because of various immoral executives, but also because it is a target of sustained attacks. For several decades, corporate revisionists have toiled to transform the corporation from private to public...
The Columbian Exchange and the Reversal of Fortune
It is difficult to think about modern American food without including hamburgers and hotdogs. It is also difficult to think about popular American history without cowboys mounted on horseback tending herds of cattle. However, before the arrival of...
The Effect of Judicial Selection Processes on Judicial Quality: The Role of Partisan Politics
The quality of a state's judicial system is an important determinant of economic growth and vitality. The decisions made within state judicial systems affect the degree to which private property rights are well-defined and enforced, which is an essential...
Why the U.S. External Imbalance Matters
Last year the U.S. current account deficit (mainly on trade but including capital income and transfers) reached almost 7 percent of GDP, or about twice as large a share as in 1987, the peak of the previous episode of large external imbalances and dollar...