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BANKRUPTCIES WITH SOFT BUDGET CONSTRAINT

โœ Scribed by KAREL JANDA


Book ID
111042771
Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
402 KB
Volume
77
Category
Article
ISSN
1463-6786

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Kornai's thesis that shortage results from demand expansions bred by the soft budget constraint, derives from his implicit assumption that price regimes of input and output firms are different. Since any firm is both an input and an output firm, which discards the assumption as logically untenable,