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The soft budget constraint - today a popular metaphor - is a paradox. In socialist economies, it implies that the state tends to bail out state-owned firms in financial trouble, in spite of the tremendous performance problems of the entire system that result. When the socialist system broke...
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, China and India. It begins with a clarification of the meaning of industrial policy, since not only does the term mean … past experience with variants of industrial policies. The similarities of the "China model" to past East Asian experience …
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