[Soft Budget Constraints and Higher Education Sector Financial Distress]
This 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.
|Date of creation:||Jul 2007|
|Date of revision:|
|Publication status:||Published in China Economy: Reform and Development book chapter (2008): pp. 159-166|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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