Sheshinski, Eytan; López-Calva, Luis F. - In: CESifo economic studies : CESifo, a joint initiative of … 49 (2003) 3, pp. 429-459
only are the managers' objectives distorted, but the budget constraints they face are also softened. The soft-budget … constraint emerges from the fact that bankruptcy is not a credible threat to public managers, for it is in the central government …