Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Dynamic Commitment and the Soft Budget Constraint An Empirical Test
Stockholm University, Faculty of Social Sciences, Department of Economics.
2010 (English)In: American Economic Journal. Economic Policy, ISSN 1945-7731, Vol. 2, no 3, 154-179 p.Article in journal (Refereed) Published
Abstract [en]

This paper develops an empirical framework for the problem of soft budgets which is explicitly based on a dynamic commitment problem, i e, the inability of a supporting organization to commit itself not to extend more resources ex post to a budget-constrained organization than it was prepared to provide ex ante Swedish local governments are used as a testing ground since the central government distributed a large number of fiscal transfers The estimated soft-budget effect is economically significant on average a local government Increases its debt by more than 20 percent by going from a hard to a soft budget constraint (JEL D82, G32, L32)

Place, publisher, year, edition, pages
2010. Vol. 2, no 3, 154-179 p.
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-51217DOI: 10.1257/pol.2.3.154ISI: 000284559700007OAI: oai:DiVA.org:su-51217DiVA: diva2:387806
Note
authorCount :1Available from: 2011-01-14 Created: 2011-01-10 Last updated: 2011-02-16Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Pettersson-Lidbom, Per
By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 19 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf