Showing econ.THShow all
2 papers · 1 filter
econ.TH2025
Two-Instrument Screening under Soft Budget Constraints
Xinli Guo
We study soft budget constraints in multi-tier public finance when an upper-tier government uses two instruments: an ex-ante grant schedule and an ex-post rescue. Under convex resc…
econ.TH2025
Optimal Transfer Mechanism for Municipal Soft-Budget Constraints in Newfoundland
Xinli Guo
Newfoundland and Labrador's municipalities face severe soft budget pressures due to narrow tax bases, high fixed service costs, and volatile resource revenues. We develop a Stackel…