The Institutional Economics of Water

The Institutional Economics of Water

A Cross-Country Analysis of Institutions and Performance

R. Maria Saleth and Ariel Dinar

This outstanding new book provides the most detailed and comprehensive evaluation of water reform and water sector performance from the perspectives of institutional economics and political economy.

Chapter 10: Institutional Sequencing and Packaging

R. Maria Saleth and Ariel Dinar

Subjects: economics and finance, environmental economics, institutional economics, environment, environmental economics, water


Our analysis in the two previous chapters shows that our model of institution–performance interaction, cast within a simultaneous equation framework, is resilient and its empirical results in different estimation contexts are robust and reliable. The analytical and empirical strength of our approach allows us to take the analysis to its next logical level, which is still more insightful from both theoretical and policy perspectives. The initial focus of our analysis was mainly on the relative role and significance of institutional aspects, based on their local effects within a given equation. Attention then shifted to the formalization of various layers of institution–performance linkages, utilizing the relationship among variables across equations within the simultaneous system framework. The evaluation of the local effects of institutional variables within different equations and the strength of institutional intra- and interlinkages provides a basis for understanding the systemwide institutional and performance impacts of a marginal change associated with a variable in any given equation within the system. This chapter attempts to evaluate the nature, pattern, and implications of such systemwide impacts initiated by local changes in the institutional variables and to address some key issues surrounding institutional design and reform implementation both in general and in water sector contexts. With the quantification of different layers of linkages among institutional and performance variables, we can now trace quantitatively the multifarious routes through which the effects of a marginal change in an institutional variable are transmitted and reflected ultimately on water sector performance. By tracing all the...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information