budget constraint. Both of the aforementioned papers imposed Bayesian incentive 5Readers with long memories will recall that … Gale [9] compute the revenue maximizing pricing scheme when there is a single buyer whose budget constraint and valuation … other words, all types above some „v will be treated as if they had valuation exactly „v, and the budget constraint will …

non-cooperative and e� cient outcomes under hard budget constraint. The paper starts with looking at the non … obtained when there is a soft budget constraint. 3 The soft budget constraint In Section 2, we show that the �rst-best outcome … the bailout policy is lower than the amount chosen by the individuals when there is a hard budget constraint. This implies …

impact on the optimal central government grant whereas they can either soften or harden the regional budget constraint … depending on the specific formulae. Revenue equalisation softens the budget constraint whereas tax base equalisation hardens the … budget constraint of poor states. …