EconPapers    
Economics at your fingertips  
 

Understanding the Soft Budget Constraint

János Kornai, Eric Maskin and Gérard Roland ()

No 19, Economics Working Papers from Institute for Advanced Study, School of Social Science

Abstract: We propose a clarification of the notion of a soft budget constraint, a concept widely used in the analysis of socialist, transitional, and market economies. Our interpretation is broad enough to embrace most existing approaches to soft budget constraint phenomena and provides a classification of their causes and consequences. In light of this interpretation, we then review the theoretical literature on the subject and compare it with those on other dynamic commitment problems in economics.

Date: 2002-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Published in Journal of Economic Literature, 2003, Vol. 41, issue 4, 1095-1136

Downloads: (external link)
http://www.sss.ias.edu/publications/papers/econpaper19.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.sss.ias.edu/publications/papers/econpaper19.pdf [301 Moved Permanently]--> https://www.sss.ias.edu/publications/papers/econpaper19.pdf)

Related works:
Journal Article: Understanding the Soft Budget Constraint (2004)
Journal Article: Understanding the Soft Budget Constraint (2004)
Journal Article: Understanding the Soft Budget Constraint (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ads:wpaper:0019

Access Statistics for this paper

More papers in Economics Working Papers from Institute for Advanced Study, School of Social Science Contact information at EDIRC.
Bibliographic data for series maintained by Nancy Cotterman ().

 
Page updated 2019-12-03
Handle: RePEc:ads:wpaper:0019