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Kornai's soft budget constraint and the shortage phenomenon: A criticism and restatement

โœ Scribed by S. Gomulka


Book ID
104757825
Publisher
Springer US
Year
1985
Tongue
English
Weight
1017 KB
Volume
19
Category
Article
ISSN
1573-9414

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๐Ÿ“œ SIMILAR VOLUMES


Irrelevance of the soft budget constrain
โœ A. Bajt ๐Ÿ“‚ Article ๐Ÿ“… 1991 ๐Ÿ› Springer US ๐ŸŒ English โš– 771 KB

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,