A Model of Regional Debt with a Soft Budget Constraint
Breuillé, Marie-Laure
A Model of Regional Debt with a Soft Budget Constraint - 2006.
10
In this article, we endogenously derive the soft budget constraint phenomenon in a federation when fiscal decisions are delegated to regions. In this framework, the softness of the regional budget constraint results from federal government cross-subsidization objective. We analyse the impact of the soft budget constraint on the borrowing opportunity cost. Classification JEL : E62; H7
A Model of Regional Debt with a Soft Budget Constraint - 2006.
10
In this article, we endogenously derive the soft budget constraint phenomenon in a federation when fiscal decisions are delegated to regions. In this framework, the softness of the regional budget constraint results from federal government cross-subsidization objective. We analyse the impact of the soft budget constraint on the borrowing opportunity cost. Classification JEL : E62; H7
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