It is shown that the inefficiencies created by the “soft” budget constraint, enjoyed by enterprises in Eastern Europe …-makers. Commitment to a “hard” budget constraint can best be achieved by the institution of a suitable social safety net. The burden on …

In this paper we consider the problem of financing infrastructure when the regulator faces a budget constraint. The … property is that the mechanism is a third best one. In other words, as long as the budget-constraint is binding, the optimal … output is strictly lower than the second best output for any given type. Finally, if the budget constraint is too strong …

soft budget constraint syndrome which causes the firm to underinvest ex ante in order to extract state subsidy and thereby … unter dem Stichwort „soft budget constraint“ diskutiert wird. In der vorliegenden Untersuchung wird gezeigt, daß eine …

This study examines the effect of the hardening of the budget constraint on the investment behaviour of Italian state … overinvestment. We argue that, under a soft budget constraint, state firms’ managerial discretion and, in particular, collusion …

This paper contributes to the literature on the role of decentralization in hardening the budget constraint of public … state-held corporate sector. It analyses the effects of the upward devolution on the hardening of the budget constraint of …

In this paper we consider the problem of financing infrastructure when the regulator faces a budget constraint. The … property is that the mechanism is a third best one. In other words, as long as the budget-constraint is binding, the optimal … output is strictly lower than the second best output for any given type. Finally, if the budget constraint is too strong …