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“Hard” and “Soft” Budget Constraint

In: 40 Years of Research on Rent Seeking 2

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  • J. Kornai

Abstract

Hungarian economic literature in recent years has much discussed the behaviour of enterprises and, in this context, the impacts of economic coercion on the enterprise. This study wishes to contribute to the subject. Its main task is to clarify some notions: what should be meant by “budget constraint”, by the “hardness” and “softness” of this constraint.*

Suggested Citation

  • J. Kornai, 2008. "“Hard” and “Soft” Budget Constraint," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 569-583, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79247-5_33
    DOI: 10.1007/978-3-540-79247-5_33
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