This paper presents a model of soft budget constraints (SBC) in a bank lending relationship, emphasizing the role of institutions in shaping the SBC phenomena. The model allows two types of SBC to emerge according to specific constellations of parameters: the SBC as a dynamic commitment problem...

Uruguay generates a variety of policy outcomes. First, there are relatively stable policies, such as those allowing for the commercial and financial openness of the country. Then there are inflexible and low-quality policies, such as those related to social policies, some areas of state reform...

This paper addresses the contradictory results obtained by Segal (1997) and Spiller & Gely (1992) concerning the impact of institutional constraints on the U.S. Supreme Court's decision making. By adapting the Spiller & Gely maximum likelihood model to the Segal dataset, we find support for the...

This paper addresses the contradictory results obtained by Segal (1997) and Spiller & Gely (1992) concerning the impact of institutional constraints on the U.S. Supreme Court's decision making. By adapting the Spiller & Gely maximum likelihood model to the Segal dataset, we find support for the...