The Kornai effect and soft budget constraints

Article Abstract:

The effect of soft-budget constraints by a government on input demands as first defined by Janos Kornai is verifiable through its application to several scenarios of subsidy rate. Known as the Kornai effect, this phenomenon involves the willingness of a government to help losing firms and the consequent rise in input demands. The reason for this relationship has not been well researched although it can be surmised that a form of paternalism partly accounts for such.

Economic policy, Budget, Budgeting, Budgets, Fiscal policy

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The two Kornai effects

Article Abstract:

Research is presented describing the study of comparative economic theory and the Kornai effect which measures soft budget constraints on revenue when a firm takes state financial aid.

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The evolution of complexity in primitive exchange theory

Article Abstract:

Research is presented describing the study of simple or primitive economies to measure the importance of kinship as a factor influencing repayment systems and trade.

Exchange, Primitive societies, Traditional societies

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