[Soft Budget Constraints and Higher Education Sector Financial Distress]
AbstractThis article modeled the soft budget constrains of higher education schools in the framework of Dewatripont & Maskin(1995). The main conclusion is that the prevalent university financial distress in China should be attributed to the soft budget constrains. From the model, the author conclude several approach to hardening the budget constrain of universities, there are concerned to the appointment of university leaders and the incentive system, universities mergers and the freedom of accessing to the credit market. Additionally, the conclusions also rebut the highly argued insufficient input causation and the wrong idea that solving the financial distress by universities mergers.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11501.
Date of creation: Jul 2007
Date of revision:
Soft budget constrains; Financial distress; Universities;
Find related papers by JEL classification:
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
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