Analysis of soft budget constraint

Since the term Soft Budget Constraint(SBC) was coined by Kornai(1980),it has been widely accepted as a basic concept for analyzing problems in centrally planned economies and transition economies,particularly those associated with state-owned firms.Meanwhile soft budget constraints are not restricted to state-owned firms,most theories of soft budget constraint compare state-owned firms with firms in decentralized economies,This paper induces theory summarize of soft budget constraints that applies to corporations in market economies and to state-owned firms in centralized economies and comments on them,meanwhile to apply dynamic soft budget constraint.