Investment, Credit Rationing, and the Soft Budget Constraint: What Would a Well-Functioning Credit Market Look Like?
AbstractIV estimates of the link between profits and investment in the Czech Republic find a complex relationship. While firms may occasionally be credit rationed or face soft budget constraints, investments generally flow to industries with the greatest profit potential or need for recapitalization
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Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 0306003.
Length: 10 pages
Date of creation: 16 Jun 2003
Date of revision:
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Investment; Transition Economies; Soft budget constraint;
Other versions of this item:
- Hanousek, Jan & Filer, Randall K., 2004. "Investment, credit rationing, and the soft budget constraint: what would a well-functioning credit market look like?," Economics Letters, Elsevier, vol. 82(3), pages 385-390, March.
- D2 - Microeconomics - - Production and Organizations
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- G3 - Financial Economics - - Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-06-25 (All new papers)
- NEP-CFN-2003-06-25 (Corporate Finance)
- NEP-MAC-2003-06-25 (Macroeconomics)
- NEP-MFD-2003-06-25 (Microfinance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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