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Understanding the Soft Budget Constraint

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Author Info
J. KORNAI
E. MASKIN
G. ROLAND.

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Abstract

(The Ending) The phenomenon of the soft budget constraint (SBC) in a competitive environment is analyzed in the second part of the article. Its consequences for banks and the role played in developing financial crises are considered. Political intervention in firms is studied. The conclusion is made that the SBC syndrome can arise in any economic system.

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Publisher Info
Article provided by N.P. Redaktsiya zhurnala "Voprosy Economiki" in its journal VOPROSY ECONOMIKI.

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Handle: RePEc:nos:voprec:2004-12-3

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