Search Results - subject:"Soft budget constraint"

Sources of investment inefficiency: The case of fixed-asset investment in China

Qin, Duo; Song, Haiyan - 2007

This study attempts to measure the inefficiency associated with aggregate investment in a transitional economy. The inefficiency is decomposed into allocative and production inefficiency based on standard production theory. Allocative inefficiency is measured by disequilibrium investment demand....

Persistent link: https://www.econbiz.de/10010284200

Costs and benefits of creditor concentration: An empirical approach

Carmignani, Amanda; Omiccioli, Massimo - Banca d'Italia - 2007

on the likelihood of financial distress, by generating perverse ex-ante incentives for borrowers (soft budget constraint … firms, we try to separate empirically these conflicting effects. Our results show that, if we control for the soft-budget-constraint … offset by the soft-budget-constraint effect and ii) higher concentration of credit lines increases liquidity risks and thus …

Persistent link: https://www.econbiz.de/10005467311

An Endogenous Attitude to Firms’ Risk Aversion: A Model

Bauer, Michal - In: Czech Journal of Economics and Finance (Finance a uver) 57 (2007) 7-8, pp. 382-399

assumptions about a firm’s financing – access to the equity market, the possibility of a soft budget constraint – allows the …

Persistent link: https://www.econbiz.de/10005808644

Funding source and soft budget constraint

Breuillé, Marie-Laure; Madiès, Thierry; Taugourdeau, … - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2007

able to limit the soft budget constraint phenomenon. …

Persistent link: https://www.econbiz.de/10005763150

Tradable deficit permits: a way to ensure sub-national fiscal discipline?

Breuillé, Marie-Laure - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2007

This paper proposes a system of tradable deficit permits for implementing budgetary austerity at the local level. We evaluate the efficiency of the fiscal retrenchment allocation in a dynamic setting with a commitment problem. The way rights are allcated and traded on the market turns out to be...

Persistent link: https://www.econbiz.de/10005763152

Fiscal federalism and soft budget constraint: does the nature of public spending matter?

Breuillé, Marie-Laure; Madiès, Thierry; Taugourdeau, … - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2007

This paper analyses the impact of both the nature of regional public spending and the federal government’s fiscal tools on the softness of the regional budget constraint and the regional provision of public good. We show that i) whatever the nature of regional public spending, the regional...

Persistent link: https://www.econbiz.de/10005196099

Liberal Regulation : Privatization of Natural Monopolies with Adverse Selection

Auriol, Emmanuelle; Picard, Pierre M. - 2007

This paper studies the effect of soft-budget constraints in a pure adverse selection model of monopoly regulation. We consider a government maximizing total surplus but incurring some cost of public funds à la Laffont Tirole (1993). We propose a regulatory set-up in which firms are free to...

Persistent link: https://www.econbiz.de/10014052152

Too Many to Fail? Inter-Enterprise Arrears in Transition Economies

Hildebrandt, Antje - 2007

In advanced market economies, the use of trade credits is an important way of short-term financing and generally considered as being part of normal business practice. Some transition economies, however, have experienced a rapid accumulation of trade credits which have led to interlocking webs of...

Persistent link: https://www.econbiz.de/10014224059

Economic policy in health care : sickness absence and pharmaceutical costs

Granlund, David (contributor) - 2007

Persistent link: https://www.econbiz.de/10003456103

Incentive problems in financial conglomerates

Lóránth, Gyöngyi (contributor) - 2007

Persistent link: https://www.econbiz.de/10003410851