This paper explores the relevance of soft budget constraints (SBC) to development studies by examining the parastatal …

to bailout expectations, which in turn resulted in soft budget constraints and over-borrowing. This paper investigates … their deficits – but only to pre Maastricht levels. In other words, the Euro led to soft budget constraints, and the PIIGS … exploited these soft budget constraints to some extent (but not excessively). From a policy perspective, our findings favor …

We study optimal wage schemes for teams, under the presence of budget constraints, in a model in which agents’ effort … complex contracts that are vulnerable to ex post manipulations and off-equilibrium path violations of the budget constraints …

We present an equilibrium search model of competing mechanisms where some buyers are budget constrained. Absent budget … constraints, the existing literature capitulates that if buyers differ in their valuations then in the unique equilibrium all …