“Legal Obligation, Non-Compliance and Soft Budget Constraint“, Economic and Business Review, 1999, Vol. 1. No. 1-2, pp. 53-66. Original: 5.99, in Hungarian: 1998.

Kornai János: “Legal Obligation, Non-Compliance and Soft Budget Constraint“, Economic and Business Review, 1999, Vol. 1. No. 1-2, pp. 53-66. Original: 5.99, in Hungarian: 1998.

ECONOMIC AND BUSINESS REVIEW for Central and South-Eastern Europe The Review seeks to embrace the disciplines of economics, organisation and business with a particular emphasis on the conditions and prospects of Central and South-Eastern European countries. Unlike other journals operating within individual disciplines, the Review focuses on the geographical area of Central and South-Eastern Europe by applying the methodology of all three disciplines - economics, business and organisation. By adopting this multi-disciplinary approach, we wish to attract writers from all parts of the world whose research and policy interests involves this geographical area. Both theoretical and empirical contributions from these areas, especially those with lessons for the economic policies of these countries, are most welcome. Today’s Economic and Business Review is the successor to the Economic Review (1950-1990) and the Slovenian Economic Review (1991-1999), which were published mainly in the Slovenian language by the Union of Economists of Slovenia and the Faculty of Economics in Ljubljana. As there is a growing need for researchers studying the Central and South-Eastern European countries, and also to mark the Review’s 50th anniversary, the publishers decided to change the old name and broaden its scope so as to reflect its new role. The Review is published four times a year. EDITORS Neven Borak, Nevenka Hrovatin, Janez Prasnikar, Danijel Pucko EXECUTIVE EDITOR Vekoslav Potocnik EDITORIAL COMMITTEE Joze Gricar, Marko Jaklic, Slavka Kavcic, Vladimir Lavrac, Joze Mencinger, Dusán Mramor, Mojmir Mrak, Joie Pavlic Damjan, Miroslav Rebernik. Ivan Ribnikar, Ica Rojsek, Rudi Rozman, Davor Savin, Andrej Susjan, Marjan Svetlicic, Metka Tekavcic, Milan Vodopivec The Editors, Production and Theme-Issues Editor, Executive Editor and Editorial Committee form the Review’s executive editorial board and are responsible for all matters concerning regular publishing of the review. INTERNATIONAL EDITORIAL BOARD Stephen J. Bailey, Glasgow-Caledonian University, Department of Economics, United Kingdom / Lubica Bajzíková, Comenius University, Faculty of Management, Slovakia / Károly Balaton, Budapest University of Economic Sciences, Faculty of Business Administration, Hungary / Will Bartlett, University of Bristol, School for Policy Studies, United Kingdom / Arnoud W. A. Boot, Department of Financial Management, Faculty of Economics and Econometrics, University of Amsterdam, The Netherlands / John Bradley, The Economic and Social Research Institute (ESRI), Ireland / Marin Buble, Faculty of Economics. University of Split, Croatia / Vince Edwards, Buckinghamshire Business School (CREEB), United Kingdom / Vojmir Franicevic, Faculty of Economics, University of Zagreb, Croatia / András Gábor, Budapest University of Economic Sciences, Department for Information Systems, Hungary / Lovorka Galetic, Faculty of Economics, University of Zagreb, Croatia / Neil Garrod, Department of Accounting and Finance, University of Glasgow, United Kingdom / Jeffrey Henderson, Manchester Business School, University of Manchester, United Kingdom / Milena Jovicic. Faculty of Economics, University of Belgrade, Yugoslavia / Andrej Kakabadse. Cranfield University, United Kingdom / Robert Klemkosky, Indiana University, School of Business, USA / Peter Kraljic. McKinsey and Company Inc., Germany / Peer Hull Kristensen, Copenhagen Business School, Denmark / Alessio L. 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