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. 29, No. 2, Spring-Summer

Can Latin America Prosper by Reducing the Size of Government?
This article examines the effect of government consumption on economic growth in 23 Latin American countries over the years 1974-2003. Employing the Armey Curve, we show that the typical Latin American government is spending beyond the optimal point....
Economic Development and Growth: A Survey
The most basic challenge for economics is to understand the nature and causes of economic progress. But what exactly is to be explained? What are the facts? One very striking fact is historical--the rapid acceleration in the rate of economic progress...
Effects of the Financial Crisis on the U.S.-China Economic Relationship
The U.S. and China are two of the dominant economies in the world today and the nature of their relationship has far-reaching implications for the smooth functioning of the global trade and financial systems. These two economies are becoming increasingly...
Mandatory Health Insurance: Lessons from Massachusetts
What lessons can be learned from the implementation of mandatory health insurance? As the Obama administration contemplates enacting far-reaching health care reforms that increase the role of government, the case of Massachusetts is worth serious study....
On the Measurement of Zimbabwe's Hyperinflation
Zimbabwe experienced the first hyperinflation of the 21st century. (1) The government terminated the reporting of official inflation statistics, however, prior to the final explosive months of Zimbabwe's hyperinflation. We demonstrate that standard...
Small Change: Money, Political Parties, and Campaign Finance Reform
Small Change: Money, Political Parties, and Campaign Finance Reform Raymond J. La Raja Ann Arbor: University of Michigan Press, 2008, 304 pp. Ray La Raja has written one of the most provocative campaign finance books in recent memory. Small...
The Effects of Corruption on FDI Inflows
The surge in foreign direct investment (FDI) flows during the 1990s has motivated a host of recent studies into their determinants. Recently, the level of corruption in the host country has been introduced as one factor among the determinants of FDI...
The Potential for System-Friendly K-12 Reform
Numerous empirical models connect individual student test scores or average test scores to theoretically plausible policy and socioeconomic variables. Although the models were created to test for the effect of a specific factor like funding levels...
U.S. Energy Policy and the Presumption of Market Failure
Over the last 35 years, the U.S. government has embarked on several major projects to spur the commercial development of energy technologies intended to substitute for conventional energy resources, especially fossil fuels. Those efforts began with...