Goodspeed, Timothy - In: International Tax and Public Finance 9 (2002) 4, pp. 409-421
budget constraint lowers the opportunity cost of borrowing for the region, but also increases the tax-cost since a portion of … bailout, leading to efficient borrowing decisions as in the case of a hard budget constraint. The results are also useful for … expected votes by increasing transfers as regions borrow. This bail out of regional governments creates a regional soft budget …
