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Kornai goes to Kenya

Author

Listed:
  • Peter T. Leeson

    (George Mason University)

  • Colin Harris

    (St. Olaf College)

  • Andrew Myers

    (St. Olaf College)

Abstract

János Kornai developed soft budget constraint logic to explain the socialist world’s dysfunctional economies. We extend his logic to explain dysfunctional land reform in the developing world. International development organizations such as the World Bank provide support for land privatization to developing-country governments, softening their budget constraints. Softer budget constraints encourage developing-country governments to pursue land privatization even when its social value is negative. Kenya’s land reform program illustrates the soft budget constraint syndrome.

Suggested Citation

  • Peter T. Leeson & Colin Harris & Andrew Myers, 2021. "Kornai goes to Kenya," Public Choice, Springer, vol. 187(1), pages 99-110, April.
    • Handle: RePEc:kap:pubcho:v:187:y:2021:i:1:d:10.1007_s11127-020-00782-w
    DOI: 10.1007/s11127-020-00782-w
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    References listed on IDEAS

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    Cited by:

    1. Peter J. Boettke & Rosolino A. Candela, 2021. "János Kornai, the Austrians, and the political and economic analysis of socialism," Public Choice, Springer, vol. 187(1), pages 85-97, April.
    2. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.
    3. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, September.
    4. Bustamante, Pedro & Gomez, Marcela & Murtazashvili, Ilia & Weiss, Martin, 2020. "Spectrum anarchy: why self-governance of the radio spectrum works better than we think," Journal of Institutional Economics, Cambridge University Press, vol. 16(6), pages 863-882, December.

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    More about this item

    Keywords

    Janos Kornai; Soft budget constraint; Land reform; Privatization; Kenya;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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