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Can EU Conditionality Remedy Soft Budget Constraints in Transition Countries?

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dc.creator Weise, Christian
dc.creator Schröder, Philipp J. H.
dc.creator Brücker, Herbert
dc.date 2003
dc.date.accessioned 2013-10-16T06:58:24Z
dc.date.available 2013-10-16T06:58:24Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18132
dc.identifier ppn:38167715X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18132
dc.description Soft budget constraints (SBCs) are a persistent feature of transition economies and have been blamed for i.a. a lack of fiscal consolidation and sluggish growth. EU eastward enlargement has – among other things – been conditioned on tackling SBCs. This paper analyzes such outside conditionality theoretically and empirically. First, modelling the SBC problem as a war of attrition between the applicant countries? governments and firms we find that outside conditionality can foster SBC hardening. Yet, toughening the EU stance or reducing the number of enlargement rounds may have ambiguous effects. Second, estimating SBC hardening in a partial adjustment model by measuring the reaction of employment to output changes we find that EU conditionality did indeed help candidates to fight SBCs.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 375
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject P21
dc.subject D78
dc.subject G30
dc.subject P30
dc.subject P26
dc.subject F15
dc.subject ddc:330
dc.subject soft budget constraint
dc.subject EU enlargement
dc.subject war of attrition
dc.subject Budgetrestriktion
dc.subject EU-Beitrittskriterien
dc.subject EU-Erweiterung
dc.subject Übergangswirtschaft
dc.subject Theorie
dc.subject Osteuropa
dc.title Can EU Conditionality Remedy Soft Budget Constraints in Transition Countries?
dc.type doc-type:workingPaper


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