Irrelevance of the soft budget constrain
โ
A. Bajt
๐
Article
๐
1991
๐
Springer US
๐
English
โ 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,