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

See all articles by Eric Maskin

Eric Maskin

Princeton University - Department of Economics; Harvard University - Department of Economics; Massachusetts Institute of Technology (MIT) - Department of Economics

Chenggang Xu

University of Hong Kong

Multiple version iconThere are 3 versions of this paper

Date Written: August 1999

Abstract

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

Maskin, Eric S. and Xu, Chenggang, Soft Budget Constraint Theories: From Centralization to the Market (August 1999). Conference Paper, The Nobel Symposium in Economics - The Economics of Transition, Stockholm, September 1999, Available at SSRN: https://ssrn.com/abstract=197288

Eric S. Maskin (Contact Author)

Princeton University - Department of Economics ( email )

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Chenggang Xu

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