Investment, Credit Rationing, and the Soft Budget Constraint: What Would a Well-Functioning Credit Market Look Like?

Jan Hanousek () and Randall Filer ()

Microeconomics from EconWPA

Abstract: IV estimates of the link between profits and investment in the Czech Republic find a complex relationship. While firms may occasionally be credit rationed or face soft budget constraints, investments generally flow to industries with the greatest profit potential or need for recapitalization

Keywords: Investment; Transition Economies; Soft budget constraint (search for similar items in EconPapers)
JEL-codes: D2 E2 G3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-mac and nep-mfd
Date: 2003-06-16
Note: Type of Document - pdf; prepared on IBM PC ; to print on HP/PostScript; pages: 10 ; figures: included
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http://129.3.20.41/eps/mic/papers/0306/0306003.pdf (application/pdf)

Related works:
Journal Article: Investment, credit rationing, and the soft budget constraint: what would a well-functioning credit market look like? (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0306003

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