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Soft Budget Constraint Theories: From Centralization to the Market

In: The Economics of Transition

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  • Eric Maskin
  • Chenggang Xu

Abstract

This chapter has two purposes. One is to examine the effect of soft budget constraints (SBC) on economies in transition from centralization to capitalism. The other is to survey our understanding of SBC more generally. Of course, this latter aim is also pertinent to the former.

Suggested Citation

  • Eric Maskin & Chenggang Xu, 2007. "Soft Budget Constraint Theories: From Centralization to the Market," Palgrave Macmillan Books, in: Erik Berglöf & Gérard Roland (ed.), The Economics of Transition, chapter 2, pages 12-36, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-74092-5_2
    DOI: 10.1057/978-1-349-74092-5_2
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