The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Eric Maskin - One of the best experts on this subject based on the ideXlab platform.
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understanding the soft Budget Constraint
Voprosy Economiki, 2004Co-Authors: Janos Kornai, Eric Maskin, Gerard RolandAbstract:(The Ending) The phenomenon of the soft Budget Constraint (SBC) in a competitive environment is analyzed in the second part of the article. Its consequences for banks and the role played in developing financial crises are considered. Political intervention in firms is studied. The conclusion is made that the SBC syndrome can arise in any economic system.
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understanding the soft Budget Constraint
Voprosy Economiki, 2004Co-Authors: Janos Kornai, Eric Maskin, Gerard RolandAbstract:The article deals with the phenomenon of the soft Budget Constraint (SBC). Though originally it was formulated to illuminate economic behavior in socialist economies, this concept is increasingly acknowledged to be pertinent well beyond their realm. The authors have two main objectives: conceptual clarification and survey of formal theoretical literature on SBC. In the first part of the article the accent is made on analyzing the essence of the SBC syndrome, means of its softening and corresponding expectations of organizations. Formal models of SBC in socialist and transition economies are also analyzed.
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understanding the soft Budget Constraint
Journal of Economic Literature, 2003Co-Authors: Janos Kornai, Eric Maskin, Gerard RolandAbstract:We propose a clarification of the notion of a soft Budget Constraint, a concept widely used in the analysis of socialist, transitional, and market economies. Our interpretation is broad enough to embrace most existing approaches to soft Budget Constraint phenomena and provides a classification of their causes and consequences. In light of this interpretation, we then review the theoretical literature on the subject and compare it with those on other dynamic commitment problems in economics.
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soft Budget Constraint theories from centralization to the market
Economics of Transition, 2001Co-Authors: Eric MaskinAbstract:This paper surveys the theoretical literature on the effect of soft Budget Constraints on economies in transition from centralization to capitalism; it also reviews our understanding of soft Budget Constraints in general. It focuses on the conception of the soft Budget Constraint syndrome as a commitment problem. We show that the two features of soft Budget Constraints in centralized economies ‐ ex post renegotiation of firms’ financial plans and a close administrative relationship between firms and the centre ‐ are intrinsically related. We examine a series of theories (based on the commitment-problem approach) that explain shortage, lack of innovation in centralized economies, devolution, and banking reform in transition economies. Moreover, we argue that soft Budget Constraints also have an influence on major issues in economics, such as the determination of the boundaries and capital structure of a firm. Finally, we show that soft Budget Constraints theory sheds light on financial crises and economic growth.
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recent theoretical work on the soft Budget Constraint
The American Economic Review, 1999Co-Authors: Eric MaskinAbstract:The soft Budget Constraint syndrome, first identified and studied by Janos Kornai, arises when a seemingly unprofitable enterprise is bailed out by the government or the enterprise's creditors. In other words, the enterprise is not held to a fixed Budget, but finds its Budget Constraint "softened" by the infusion of additional credit when it is on the verge of failure. In this paper I examine some recent theoretical analyses of this phenomenon.
Janos Kornai - One of the best experts on this subject based on the ideXlab platform.
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hard and soft Budget Constraint
2016Co-Authors: Janos KornaiAbstract:The concept of "Budget Constraint" had been introduced by the theory of household consumption** and then it was taken over by the general equilibrium theory. In this context, "Budget" is of general nature and serves to denote the plan for revenues and expenditure of any economic unit: household, enterprise, non-profit institution. It is thus not restricted exclusively to the (fiscal) plan of the central government. For those less familiar with the literature on microeconomics it will be useful to explain this notion with the aid of a highly simplified example and a related figure. A factory plans a technological reconstruction, for which a definite sum, say 50 million Forints, are available. It may choose at discretion from various degrees of mechanization and automation. In the figure two isoquant curves can be seen. Let us consider the lower curve Tx. Each point of the curve represents identical amounts of output: 1000 tonnes annually. This amount can be produced with many combinations of "machine" and "labour": with more labour and fewer machines, and conversely: with less labour and more machines. The parallel T2 curve above it represents higher annual amounts, 1250 tonnes, T3 1500 tonnes, etc. The two straight lines in the figure express two possibilities for spending the Budget with two constellations of the price of "labour" and the price of "machines". The straight line with the smaller slope expresses that the firm may buy 7 units of labour for 50 million forints, if it spends nothing on machines, and 3 and a half machines, if it
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the soft Budget Constraint
Acta Oeconomica, 2014Co-Authors: Janos KornaiAbstract:The author’s ideas on the soft Budget Constraint (SBC) were first expressed in 1976. Much progress has been made in understanding the problem over the ensuing four decades. The study takes issue with those who confine the concept to the process of bailing out loss-making socialist firms. It shows how the syndrome can appear in various organizations and forms in many spheres of the economy and points to the various means available for financial rescue. Single bailouts do not as such generate the SBC syndrome. It develops where the SBC becomes built into expectations. Special heed is paid to features generated by the syndrome in rescuer and rescuee organizations. The study reports on the spread of the syndrome in various periods of the socialist and the capitalist system, in various sectors. The author expresses his views on normative questions and on therapies against the harmful effects. He deals first with actual practice, then places the theory of the SBC in the sphere of ideas and models, showing how it relates to other theoretical trends, including institutional and behavioural economics and theories of moral hazard and inconsistency in time. He shows how far the intellectual apparatus of the SBC has spread in theoretical literature and where it has reached in the process of “canonization” by the economics profession. Finally, he reviews the main research tasks ahead.
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the soft Budget Constraint syndrome in the hospital sector
Society and Economy, 2009Co-Authors: Janos KornaiAbstract:Research to date has focused mainly on the soft Budget Constraint syndrome in the corporate sector and in the credit system. This article concentrates on the hospital sector. It describes the motivations and the contradictory nature of the behaviour of the patient, the physician, the hospital director, the politician and the hospital owner. The motivations explain the reasons behind the strong inclination to overspend and the tendency of softening Budgetary limits. The burden of overspending and debt is pushed upward at each level of the decision-making and financing processes. This article covers the relationship between the various ownership types (state, non-profit and for-profit non-state ownership types) and the soft Budget Constraint syndrome. Finally, it looks at the phenomenon from normative aspects: the favourable and unfavourable consequences of the hardening of the Budgetary limit and how normative dilemmas are reflected in the minds of the participants of the events.
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the soft Budget Constraint syndrome in the hospital sector
International Journal of Health Care Finance & Economics, 2009Co-Authors: Janos KornaiAbstract:This study applies the theory and the conceptual framework of the soft Budget Constraint (SBC) to the hospital sector. The first part deals solely with hospitals in state ownership, but the study moves later onto the problems of ownership relations as well. The question posed is why the SBC phenomenon is so general in the hospital sector (including specialist outpatient clinics and diagnostic or nursing establishments that operate as separate units). The study contains several references to Hungarian experience, but the subject is of a more general nature. The SBC phenomenon is not confined to the Hungarian hospital sector, nor to the socialist system, nor as a vestige of socialism during post-socialist transformation. Soft Budget Constraints inevitably develop in the hospital sector, even in capitalist market economies.
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understanding the soft Budget Constraint
Voprosy Economiki, 2004Co-Authors: Janos Kornai, Eric Maskin, Gerard RolandAbstract:(The Ending) The phenomenon of the soft Budget Constraint (SBC) in a competitive environment is analyzed in the second part of the article. Its consequences for banks and the role played in developing financial crises are considered. Political intervention in firms is studied. The conclusion is made that the SBC syndrome can arise in any economic system.
Arunabha Sen - One of the best experts on this subject based on the ideXlab platform.
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relay node placement under Budget Constraint
Pervasive and Mobile Computing, 2019Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:Abstract The relay node placement problem in the wireless sensor network domain has been studied extensively. But under a fixed Budget, it may be impossible to procure the minimum number of relay nodes needed to design a connected network of sensor and relay nodes. Nevertheless, one would still like to design a network with high level of connectedness, or low disconnectedness. In this paper, we introduce the notion of a measure of the “connectedness” of a disconnected graph. We study a family of problems whose goal is to design a network with “maximal connectedness” subject to a fixed Budget Constraint.
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relay node placement under Budget Constraint
International Conference of Distributed Computing and Networking, 2018Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:The relay node placement problem in the wireless sensor network domain has been studied extensively over the past few years. The objective of most of these problems, is to place the fewest number of relay nodes in the deployment area so that the network, formed by the sensor and the relay nodes, is connected. Under the fixed Budget scenario, the expense involved in procuring the minimum number of relay nodes to make the network connected, may exceed the Budget. Although, in this case, one must give up the idea of having of a connected network but one would still like to design a network with a high level of connectedness, or a low level of disconnectedness. In this paper, we introduce the notion of disconnectivity, a measure of the "connectedness" of a disconnected graph. We study a family of problems whose goal is to design a network with "maximal connectedness" or "minimal disconnectedness", subject to a fixed Budget Constraint. We show that all problems in this family are NP-Complete and present an approximation algorithm with a performance bound of 1/10 for the problem that maximizes the size of the largest connected components, and inapproximability results for the problem that maximizes the size of the smallest connected component and the problem that minimizes the number of connected components. In addition, we present future direction of our research on this topic.
Chenyang Zhou - One of the best experts on this subject based on the ideXlab platform.
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relay node placement under Budget Constraint
Pervasive and Mobile Computing, 2019Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:Abstract The relay node placement problem in the wireless sensor network domain has been studied extensively. But under a fixed Budget, it may be impossible to procure the minimum number of relay nodes needed to design a connected network of sensor and relay nodes. Nevertheless, one would still like to design a network with high level of connectedness, or low disconnectedness. In this paper, we introduce the notion of a measure of the “connectedness” of a disconnected graph. We study a family of problems whose goal is to design a network with “maximal connectedness” subject to a fixed Budget Constraint.
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relay node placement under Budget Constraint
International Conference of Distributed Computing and Networking, 2018Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:The relay node placement problem in the wireless sensor network domain has been studied extensively over the past few years. The objective of most of these problems, is to place the fewest number of relay nodes in the deployment area so that the network, formed by the sensor and the relay nodes, is connected. Under the fixed Budget scenario, the expense involved in procuring the minimum number of relay nodes to make the network connected, may exceed the Budget. Although, in this case, one must give up the idea of having of a connected network but one would still like to design a network with a high level of connectedness, or a low level of disconnectedness. In this paper, we introduce the notion of disconnectivity, a measure of the "connectedness" of a disconnected graph. We study a family of problems whose goal is to design a network with "maximal connectedness" or "minimal disconnectedness", subject to a fixed Budget Constraint. We show that all problems in this family are NP-Complete and present an approximation algorithm with a performance bound of 1/10 for the problem that maximizes the size of the largest connected components, and inapproximability results for the problem that maximizes the size of the smallest connected component and the problem that minimizes the number of connected components. In addition, we present future direction of our research on this topic.
Navid Matinmoghaddam - One of the best experts on this subject based on the ideXlab platform.
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relay node placement under Budget Constraint
Pervasive and Mobile Computing, 2019Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:Abstract The relay node placement problem in the wireless sensor network domain has been studied extensively. But under a fixed Budget, it may be impossible to procure the minimum number of relay nodes needed to design a connected network of sensor and relay nodes. Nevertheless, one would still like to design a network with high level of connectedness, or low disconnectedness. In this paper, we introduce the notion of a measure of the “connectedness” of a disconnected graph. We study a family of problems whose goal is to design a network with “maximal connectedness” subject to a fixed Budget Constraint.
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relay node placement under Budget Constraint
International Conference of Distributed Computing and Networking, 2018Co-Authors: Chenyang Zhou, Anisha Mazumder, Arun Das, Kaustav Basu, Navid Matinmoghaddam, Saharnaz Mehrani, Arunabha SenAbstract:The relay node placement problem in the wireless sensor network domain has been studied extensively over the past few years. The objective of most of these problems, is to place the fewest number of relay nodes in the deployment area so that the network, formed by the sensor and the relay nodes, is connected. Under the fixed Budget scenario, the expense involved in procuring the minimum number of relay nodes to make the network connected, may exceed the Budget. Although, in this case, one must give up the idea of having of a connected network but one would still like to design a network with a high level of connectedness, or a low level of disconnectedness. In this paper, we introduce the notion of disconnectivity, a measure of the "connectedness" of a disconnected graph. We study a family of problems whose goal is to design a network with "maximal connectedness" or "minimal disconnectedness", subject to a fixed Budget Constraint. We show that all problems in this family are NP-Complete and present an approximation algorithm with a performance bound of 1/10 for the problem that maximizes the size of the largest connected components, and inapproximability results for the problem that maximizes the size of the smallest connected component and the problem that minimizes the number of connected components. In addition, we present future direction of our research on this topic.
