Tsuji, Kenji - In: International Advances in Economic Research 21 (2015) 1, pp. 33-40
<Para ID="Par1">This paper presents a model of soft budget constraints on firms where refinancing of poor projects is … when continuation is ex post inefficient. It is shown that bank capital regulation may induce soft budget constraints on … also shown that soft budget constraints are more likely to arise when the regulation is less strict, that is, when banks …