It is shown that the inefficiencies created by the “soft” budget constraint, enjoyed by enterprises in Eastern Europe …-makers. Commitment to a “hard” budget constraint can best be achieved by the institution of a suitable social safety net. The burden on …

their contingent liabilities. When these liabilities are called, budget costs can be large, as evidenced by the United …

This paper develops a political-economy model of the budget process focusing on the common pool problem of the public … budget. We show that the externality arising from the fact that public spending tends to be targeted at individual groups in … reduced by introducing elements of centralization in the budget process, that is, institutional structures that strengthen a …