Soft Budget Constraint Theories: From Centralization to the Market
Conference Paper, The Nobel Symposium in Economics - The Economics of Transition, Stockholm, September 1999
Posted: 29 Nov 1999
Date Written: August 1999
We review theoretical work studying the effect of soft budget constraints (SBC) on economies in transition from centralization to capitalism. We also examine the connection of SBC to corporate finance, banking, and financial crises.
JEL Classification: D29
Suggested Citation: Suggested Citation