TY - JOUR
T1 - The Kornai effect and soft budget constraints
AU - PUN, Wing Chung
PY - 1995/12/1
Y1 - 1995/12/1
N2 - The Kornai effect refers to situations where soft budget constraints lead to higher input demands. This paper studies the Kornai effect under different scenarios: nonrandom subsidy rate, random subsidy rate, and random and endogenous subsidy rate; and gives sufficient, sometimes necessary and sufficient, conditions for the Kornai effect to exist.
AB - The Kornai effect refers to situations where soft budget constraints lead to higher input demands. This paper studies the Kornai effect under different scenarios: nonrandom subsidy rate, random subsidy rate, and random and endogenous subsidy rate; and gives sufficient, sometimes necessary and sufficient, conditions for the Kornai effect to exist.
UR - http://commons.ln.edu.hk/sw_master/6970
UR - http://www.scopus.com/inward/record.url?scp=33750424913&partnerID=8YFLogxK
U2 - 10.1006/jcec.1995.0004
DO - 10.1006/jcec.1995.0004
M3 - Journal Article (refereed)
SN - 0147-5967
VL - 21
SP - 326
EP - 335
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
IS - 3
ER -