Crivelli, Ernesto (contributor); Staal, Klaas (contributor) - 2008
obtained when
there is a soft budget constraint.
3 The soft budget constraint
In Section 2, we show that the �rst-best outcome … Challenge of Hard Budget Constraints, MIT
Press: Cambridge, Mass.
[12] Kornai, J., 1986. The Soft Budget Constraint. KYKLOS 29 … choice for a bailout less attractive to them. Below we
analyze this choice made by individuals, given the soft-budget …